On May 1, 2018. Hecala Mining entered into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine in New Mexico for $9.6 million. Additional costs and purchases included the following (FV of S1, PV of S1, FVA of $1. PVA of $1. FVAD of S1 and PVAD of $0) (Use appropriate foctor(s) from the tables provided.): Development costs in preparing the maine Mining equipment Construction of various structures on site $2,800,000 133,600 99,400 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $12,000. The structures will be torn down Geologists estimate that 760,000 tons of ore can be extracted from the mine. After the ore is removed the land will revert back to the state of New Mexico. The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in approximately four years. Management has provided the following possible outflows for the restoration costs: Cash OutflowProbability $560,000 401 660,000 760,000 303 301 Hecala's credit-adjusted risk-free interest rate is 7%. During 2018, Hecala extracted 116,000 tons of ore from the mine. The company's fiscal year ends on December 31. Required: 1. Determine the amount at which Hecala will record the mine. 2. Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2018, assuming that Hecala uses the units-of-production method for both depreciation and depletion 3. How much accretion expense will the company record in its income statement for the 2018 fiscal year? 4. Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income statement? 5. During 2019 Hecala changed its estimate of the total amount of ore originally in the mine from 760,000 to 960.000 tons Calculate the depletion of the mine and depreciation of the mining facilities and equipment for 2019 assuming Hecala extracted 146,000 tons of ore in 2019. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Determine the amount at which Hecala will record the mine. (Round your final answer to nearest whole dollar) Cost of mine Required Required 2 > Required: 1. Determine the amount at which Hecala will record the mine. 2. Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2018, assuming that the units-of-production method for both depreciation and depletion 3. How much accretion expense will the company record in its income statement for the 2018 fiscal year? 4. Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the statement? 5. During 2019, Hecala changed its estimate of the total amount of ore originally in the mine from 760,000 to 960,000 ton the depletion of the mine and depreciation of the mining facilities and equipment for 2019 assuming Hecala extracted 146 ore in 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2018, assuming that Hecala uses the units-of-production method for both depreciation and depletion. (Do not round your intermediate calculations. Round "Depreciation" and "Depletion" rates to 4 decimal places. Round your final answers to the nearest whole dollar) Show less Depletion Depreciation of machinery Depreciation of structures (Required 1 Required 3 > Required: 1. Determine the amount at which Hecala will record the mine. 2. Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2018, assuming that Hecala uses the units of production method for both depreciation and depletion 3. How much accretion expense will the company record in its income statement for the 2018 fiscal year? 4. Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income statement? 5. During 2019, Hecala changed its estimate of the total amount of ore originally in the mine from 760,000 to 960,000 tons. Calculate the depletion of the mine and depreciation of the mining facilities and equipment for 2019 assuming Hecala extracted 146,000 tons of ore in 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 How much accretion expense will the company record in its income statement for the 2018 fiscal year? (Do not round intermediate calculations. Round your final answer to nearest whole dollar) Accretion expense Cash Out Low $560,000 660,000 760,000 Prabbit 403 303 301 Hecala's credit-adjusted risk-free interest rate is 7%. During 2018, Hecala extracted 116,000 tons of ore from the mine. The company fiscal year ends on December 31 Required: 1. Determine the amount at which Hecala will record the mine. 2. Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for 2018, assuming that Hecala the units of production method for both depreciation and depletion 3. How much accretion expense will the company record in its income statement for the 2018 fiscal year? 4. Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income statement? 5. During 2019. Hecala changed its estimate of the total amount of ore originally in the mine from 760,000 to 960,000 tons. Calcu the depletion of the mine and depreciation of the mining facilities and equipment for 2019 assuming Hecala extracted 146,000 to ore in 2019 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 During 2019, Hecala changed its estimate of the total amount of ore originally in the mine from 760,000 to 960,000 tons. Calculate the depletion of the mine and depreciation of the mining facilities and equipment for 2019 assuming Hocala extracted 146,000 tons of ore in 2019. (Do not round your intermediate calculations. Round "Depreciation" and "Depletion" rates to 4 decimal places. Round your final answers to the nearest whole dollar) Show less 2019 Depletion Depreciation of machinery Depreciation of structures