Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2021 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibitities for the restoration costs (EV of \$1. PV of \$1. EVA or \$1, PVA of \$1. EVAD of SI and PVAD of Si) (Use appropriate factor(S) from the tables provided.) To aid extraction, Jackpot purchosed some new equipment on July 1,2021, for $120,000. After the copper is removed from this mine. the equipment will be sold for an estimated residual amount of $20,000. There will be no residual value for the copper mine. The credit-adjusted risk-free rate of interest is 10%. The company expects to extract 10 million pounds of copper from the mine. Actual production was 16 million pounds in 2021 and 3 milion pounds in 2022 Required: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022 . The units-of-production method is used to calculote deprecietion. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.) Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,000,000 in 2021 for the mining site and spent an additional $600,000 to prepare the mine for extraction of the copper. After the copper is extracted in approximately four years, the company is required to restore the land to its original condition, including repaving of roads and replacing a greenbelt. The company has provided the following three cash flow possibitities for the restoration costs (EV of \$1. PV of \$1. EVA or \$1, PVA of \$1. EVAD of SI and PVAD of Si) (Use appropriate factor(S) from the tables provided.) To aid extraction, Jackpot purchosed some new equipment on July 1,2021, for $120,000. After the copper is removed from this mine. the equipment will be sold for an estimated residual amount of $20,000. There will be no residual value for the copper mine. The credit-adjusted risk-free rate of interest is 10%. The company expects to extract 10 million pounds of copper from the mine. Actual production was 16 million pounds in 2021 and 3 milion pounds in 2022 Required: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022 . The units-of-production method is used to calculote deprecietion. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.)
