Natural Resources and Depletion

Luper Company acquired a tract of land that contained iron deposits for $$5,592,400.$ Luper spent $$294,000$ to access the iron ore. Luper estimates that $2,000,000$ tons of

ore will be extracted. The estimated value of the land after the ore is extracted is $$226,400.$ During the current year, Luper extracts $150,000$ tons of iron ore.

Required:

Compute the cost of the natural resource and the amount of depletion taken during the year.

Cost of the natural resource

Amount of depletion