Computing and Recording Depletion Expense $($FSET$)$

During the year, Eldenburg Mining Company purchased land for $$9,000,000$ that had a natural resource reserve estimated to be $625,000$ tons. Development and road construction costs on the land were $$525,000,$ and a building was constructed at a cost of $$62,500.$ When the natural resources are completely extracted, the land has an estimated residual value of $$1,500,000.$ In addition, the cost to restore the property to comply with environmental regulations is estimated to be $$1,000,000.$ Production in the first and second year was $75,000$ tons and $106,250$ tons, respectively.

a$.$ Compute the depletion charge for the first and second year. Round answers to nearest whole dollar amount.

First year $Answer $1$

Second year $Answer $2$

b$.$ Using the financial statement effects template, report each year's depletion as determined in part a$.$ If the transaction affects more than one account in a single category, enter the positive amount in the first row.