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  3. part ii: depreciation and depletion (20 points) pl

PART II: Depreciation and Depletion (20 points) Please show your work/equations and BOX your final...

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PART II: Depreciation and Depletion (20 points) Please show your work/equations and BOX your final answer! Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, 2019. Of the total purchase price, $2.8 million was appropriately allocable to the copper. Estimated reserves were 800,000 tons of copper. Miller expects to extract and sell 10.000 tons of copper per month. Production began immediately. The selling price is $25 per ton. To aid production, Miller also purchased some new equipment on July 1, 2019. The equipment cost $76,000 and had an estimated useful life of 8 years. After all the copper is removed from this mine, however, the equipment will be of ho use to Miller and will be sold for an estimated $4.000. Instructions If sales and production conform to expectations, what is Miller's depletion expense (a) on this mine for financial accounting purposes for the Year 1 calendar year? (2800000 + 76o00 -H000) t foo0 = 3.19. (b) depreciation, calculate the depreciation expense of the mining equipment for 2019 and 2020. Assuming that Miller Mining utilizes the sum-of-year-digit method for

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