On February 20, 2006, Genoa Mining Company incurred costs of $3,600,000 to acquire and prepare to extract an estimated 4,000,000 tons of mineral deposits. 450,000 tons of ore were mined in 2006. At the beginning of 2007, Genoa geologists estimated that 3,900,000 tons of ore still remained. 700,000 tons of ore were mined in 2007.
Required:
Compute depletion expense for 2006 and 2007