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Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,750,000 in 2021 for the mining site and spent an additional $750,000

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Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,750,000 in 2021 for the mining site and spent an additional $750,000 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 possibilities for the restoration costs: (FV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of S1 and PVAD of $1 (Use appropriate factor(s) from the tables provided.) 2 2 3 Cash Outflow 3450,000 550,000 750,000 Probability 158 454 400 To aid extraction, Jackpot purchased some new equipment on July 1, 2021, for $150,000. After the copper is removed from this mine, the equipment will be sold for an estimated residual amount of $35,000. 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 11.5 million pounds of copper from the mine. Actual production was 3.1 million pounds in 2021 and 4.5 million 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 calculate depreciation. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.) Restoration costs: Cosh outflow Probability $ Possibility 1 Possibility 2 Possibility 3 450,000 550,000 750,000 15% 45% 40% Probablo Rostoration Cost 67,500 247,500 300,000 $ 615,000 PV of $1 Table or Calculator function: n. 4 = 1% Present value of probable restoration costs Cost of coppermine: Mining site Development cost Restoration cost 1,760,000 750,000 39,083 2021 2022 0.0000 Depletion expense (mine): Depletion per pound (#.####) Pounds extracted Depletion expense Depreciation expense (mining equipment) Depreciation per pound (#.##) Pounds extracted Depreciation expense 2021 2022 $ 0.00 0 0

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