In 20x1, BUCOLIC RURAL Co. acquired land for a total cost of 40,000,000 to be used to quarry marble, limestone, and construction aggregates. Costs incurred to obtain legal right to explore the property amounted to 8,000,000. Expenditures incurred in the exploration for and evaluation of mineral resources before technical feasibility and commercial viability of extracting a mineral resource are demonstrable totaled 12,000,000. Intangible development costs of drilling, tunnels, shafts, and wells before the actual production totaled 20,000,000. BUCOLIC Co. estimates that total recoverable reserves are 100,000,000 units. Furthermore, BUCOLIC Co. expects to sell the land for 4,800,000 after resource is depleted. However, no buyer will pay this price unless the mine is drained, filled and leveled, a process that will cost 800,000. It is BUCOLIC's policy to capitalize all exploration costs.

Actual units quarried in 20x1 through 20x4 totaled 30,000,000 units. On January 1, 20x5, BUCOLIC Co. estimated that remaining recoverable reserves is only 25,000,000 units and after the reserves are exhausted, the land will be sold for 3,200,000. Costs of disposal are estimated at 1,200,000. Actual units quarried in 20x5 totaled 6,000,000 units.

3. How much is the depletion charge in 20x5?

a. 13,284,000 b. 13,480,000c. 13,280,000d. 13,248,000

4. What is the carrying amount of the wasting asset on December 31, 20x5?

a. 43,852,000 b. 44,272,000c. 42,720,00d. 43,952,000