Hollow Mining Company purchased a tract of land with estimated copper ore deposits totaling 1,500,000 tons. The purchase price for the land was $4.8 million. During the first year of operation, Hollow mined and sold 160,000 tons of ore. During the second year, Hollow mined and sold 210,000 tons of ore. At the beginning of the third year, new geological engineering estimates determined that a total of 790,000 tons of copper ore remained. During Year 3, 245,000 tons of ore were mined and sold.

1. What was the original depletion rate used by Hollow in Years 1 and 2?

2. Make the accounting entries for depletion expense for Hollow Mining Company at the end of Years 1 and 2.

3. What is the depletion rate, carried to four decimals, for Year 3, and what accounting entry should be made to reflect the change in accounting estimate in Year 3? (Note: Round to four decimal places.)