8. Award: 9.0 points Exercise 11-18 (Algo) Cost of a natural resource; depletion and depreciation; Chapters 10 and 11 [LO11-2, 11-3] Jackpot Mining Campany operates a copper mine in central Montana. The company paid $1,550.000 in 2021 for the mining site and spent an additional $710,000 to prepare the mine for extraction of the copuer. After the couper is extracted in approxirately four years, the company is required to restore the land to its original condition, including repaving af roads and replacing a greenbelt. The company has provided the following three cash flow possibilities for the restoration costs: (FV of $1. P of $1, FVA of $1, PVAcf $1, FVAD of 31 and PVAD OF $1} (Use appropriate factor(s) from the tables provided.) 1 2 2 Cash Outlow Probability $410,000 25% 511,000 403 710,000 358 Ta aid extraction, Jackpot purchased some new equipment an July 1, 2021, for $249,000. After the copaeris moved from this mine, the equipment will be sold for an estimated residual amount of $27.000. There will be no residual value for the copper minc. The credit adjustad risk-free rate of interest is 10% The company expects to extract 11.1 milion pounds of copper from the mine. Actual production wes 2.7 million pounde in 2021 and 4.1 milion pounds in 2022. Required: 1. Compute depletion and depreciation on the mine and mining equipment for 2021 and 2022. The units of production method is used to calculate depreciation. (The expected format for rounding is presented in the appropriate rows of the table. Round your final answers to nearest whole dollar.) Restoration costs: : Cash outflow Probability Probable Restoration Cost S Presiality 1 Pucaib lily 2 Possiblity 3 410.000 510.000 710.000 2595 1045 35% Table or Calculator function 4 n= = Present value of probable restoration coele Cost of coppermine Mning i Development cest Restoration cost 2021 2022 Depletion (mine): Depletion per pound (AAM Pounds uxracle Depletion Depreciation expense (mining equipment] Depreciation per pound Pounds extracted Deprecation expense 2021 2022