QUESTION 9 The manager of Rod's Mining Co. discovered a great deal. On December 31, 2018, he purchased land and equipment - an independent appraiser valued the land at $10,000,000 and the equipment at $5,000,000. He purchased the land and equipment as a bundle purchase, for just $12,000,000 in total. Later (i.e., after the initial purchase), during 2019, Rod's Mining Co. incurred three costs related to the equipment. These costs included the following: $75,000 to overhaul the equipment's power generator. Rod's Mining Co. determined this would significantly increase the productivity of the equipment. $30,000 to add a new fuel system to the equipment, which will enable it to last 3 years longer than expected. Cost of $2,500 to paint the equipment with the company's mining tool logo. . . . Part A (6 pts.). At the time of purchase, what costs should be assigned to the land and equipment, respectively? Please show your calculation (i.e., each piece). Part B (9 pts.). Please indicate, for each of the three costs incurred during 2019, whether the manager at Rod's Mining Co. would expense it right away or add it to Property, Plant, and Equipment (i.e., capitalize). Briefly explain your reasoning for each cost. Part C. (6 pts.) Assuming the CEO of Rod's Mining Co. wants to maximize net income for 2019, what incentives does she have with respect to the decisions as to whether to capitalize or expense? In your answer, please show me that you understand the ramifications of how these costs would differentially affect Net Income this year, depending on whether they are expensed or capitalized (this is a conceptual question - you do not need to incorporate specific costs in your response)