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Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,100,000 in 2021 for the mining site and spent an additional $620,000

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Jackpot Mining Company operates a copper mine in central Montana. The company paid $1,100,000 in 2021 for the mining site and spent an additional $620,000 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 possibilities for the restoration costs: EVO 51. PVOE SLEVA OT51. PVA Of 51 FVADIO 51 and PVAD OLSU (Use appropriate factor(s) from the tables provided.) Probability Outflow $32.ee 42e, ce 620,000 453 To aid extraction. Jackpot purchased some new equipment on July 1, 2021, for $330.000. After the copper is removed from this mine, the equipment will be sold for an estimated residual amount of $24,000. 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 10.2 million pounds of copper from the mine. Actual production was 18 million pounds in 2021 and 3.2 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 Cash outflow Probable Restoration Probability 320.000 20% 3 64.000 Possibility 1 Possibility 2 Possibility 3 420.000 4596 180.000 620.000 3596 470.00 PV of $ Table or Calculator function Present value of probable restoration costs Cost of coppermine Mining site Development cost Restoration cost 3 1.100.000 20.000 321.010 2.041,010 S 2021 Depletion expense (mine): Depletion per pound (w. ) Pounds tracted Depletion expense Depreciation expense mining equipment) Depreciation per pound Pounds earacted Depreciation expense

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