On May 1, 2021, 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 $10.9 million. Additional costs and purchases included the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): Development costs in preparing the mine $4,100,000 Mining equipment 152,400 Construction of various structures on site 115,700 After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $10,000. The structures will be torn down. Geologists estimate that 890,000 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 Outflow $690,000 790,000 890,000 Probability 30% 30% 40% Hecala's credit-adjusted risk-free interest rate is 8%. During 2021, Hecala extracted 129,000 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 2021, 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 2021 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 2022, Hecala changed its estimate of the total amount of ore originally in the mine from 890,000 to 1,090,000 tons. Calculate the depletion of the mine and depreciation of the mining facilities and equipment for 2022 assuming Hecala extracted 159,000 tons of ore in 2022 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. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Cost of mine Required 1 Required 2 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 2021, 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 equipment Depreciation of structures 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 2021 fiscal year? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Accretion expense Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income statement? Separate expenses in the income statement Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 During 2022, Hecala changed its estimate of the total amount of ore originally in the mine from 890,000 to 1,090,000 tons. Calculate the depletion of the mine and depreciation of the mining facilities and equipment for 2022 assuming Hecala extracted 159,000 tons of ore in 2022. (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 2022 Depletion Depreciation of equipment Depreciation of structures