Requirement 1: MARION COMPANY Depletion and Depreciation Cost of mineral mine: Purchase price $1,600,000 Development costs 600,000 $2,200,000 Depletion: Land resale value $100,000 Estimated ore extracted (tons) 400,000 Depletion per ton $5.25 2009 Ore extracted (tons) 50,000 Depletion $262,500 2010 Ore extracted (tons) 80,000 Revised ore extraction (tons) 487,500 Revised depletion rate Depletion