Question : Depletion Girabaldi Corporation acquired the right to mine a piece of land at a cost to lease of $608,000. The related excavation costs were $1,014,000, while developmental costs were an additional $8,103,000, all of which will contribute to Girabaldi extracting 26,000 tonnes. In the first year of operations Girabaldi mined and sold 5,700 tonnes, while in its second year the company extracted 7,600 tonnes but only sold 7,250 tonnes. Instructions 1. Calculate the depletion cost per tonne. 2. Prepare the journal entry to record depletion expense for the first two years.