1.

The following information of DD company related to mining transactions:

2019 2020

Acquisition cost 1,500,000

Exploration cost 4,000,000

Development cost 1,250,000 500,000.00

Production equipment 1,500,000

Estimated cost of restoration 1,700,000

Residual value 500,000

Number of tons extracted 1,000,000 2,000,000.00

Estimated number of tons to be
extracted 7,000,000

Required: 4.1 Depletion for 2019

4.2 Depletion for 2020

Depletion 2019 2020

Acquisition cost 1,500,000.00 7,950,000.00 Depletable amount
exploration 4,000,000.00
development cost 1,250,000.00 500,000.00
estimated cost of restoration 1,700,000.00
TOTAL COST 8,450,000.00 (1,135,714.29) Depletion
Residual Value 500,000.00 7,314,285.71
Depletable ammount 7,950,000.00
Est. extraction 7,000,000.00 6,000,000.00
Rate 1.14 1.22

Tons extracted 1,000,000.00 2,000,000.00

1.14 1.22
1,135,714.29 2,438,095.24