Tishimingo Sand and Gravel paid $800,000 to acquire 1,200,000 cubic yards of sand reserves. The following statements model reflects Tishimingos financial condition just prior to purchasing the sand reserves. The company extracted 650,000 cubic yards of sand in year 1 and 450,000 cubic yards in year 2.

Required

a.	Compute the depletion charge per unit. (Round your answer to 2 decimal places.)

b.

Record the acquisition of the sand reserves and the depletion expense for years 1 and 2 in a financial statements model like the preceding one. The first event is recorded as an example. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity and NA to indicate the element is not affected by the event. (Enter any decreases to account balances and cash outflows with a minus sign. Round intermediate calculations to 2 decimal places and final answers to the nearest whole dollar amount.)