Freeport-McMoRan Copper & Gold Inc. is one of the world's largest copper and gold mining and production companies with the majority of its natural resources in Indonesia. Annual revenues exceed $16 billion. Assume that in February 2011, Freeport-McMoRan paid $700,000 for a mineral deposit in Bali. During March, it spent $65,000 in preparing the deposit for exploitation. It was estimated that 900,000 total cubic yards could be extracted economically. During 2011, 60,000 cubic yards were extracted.

During January 2012, the company spent another $6,000 for additional developmental work that increased the estimated productive capacity of the mineral deposit.

Required:

1. Compute the acquisition cost of the deposit in 2011.

2. Compute depletion for 2011.

3. Compute the net book value of the deposit after payment of the January 2012 developmental costs.