On April 17 of the current year, a mining company purchased the rights to a mine. The purchase price plus additional costs necessary to prepare the mine for extraction of minerals totaled $6,540,000. The company expects to extract 1,090,000 tons of minerals during a four year period. During the current year, 259,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for the current year. 2. Is depletion considered part of the product cost and included in the cost of Inventory? 1. Depletion for the current year 2. Is depletion considered part of the product cost and included in the cost of inventory?