On May $1,2024,$ Hecala Mining entered Into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine On May $1,2024,$ Hecala Mining entered Into an agreement with the state of New Mexico to obtain the rights to operate a mineral mine

In New Mexico for $$10$ million. Additional costs and purchases included the following:

Note: Use tables, Excel, or a financlal calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$Mining equipment $140,000$

Construction of various structures on site $68,000$After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $$10,000.$ The structureswill be torn down.

Geologists estimate that $800,000$ tons of ore can be extracted from the mine. After the ore is removed, the land will revert back to the state of New Mexico.

The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in

approximately four years. Management has provided the following possible outflows for the restoration costs:

Hecala's credit$-$adjusted risk$-$free interest rate is $8\%.$ During $2024,$ Hecala extracted $120,000$ tons of ore from the mine. The company's

fiscal year ends on December $31.$

Required:

Determine the amount at which Hecala will record the mine.

Calculate the depletion of the mine and the depreclation of the mining facilitles and equipment for $2024,$ assuming that Hecala

uses the units$-$of$-$production method for both depreclation and depletion.

How much accretion expense will the company record In Its Income statement for the $2024$ fiscal year?

Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income

statement?

During $2025,$ Hecala changed Its estimate of the total amount of ore originally In the mine from $800,000$ to $1,000,000$ tons.

Calculate the depletion of the mine and depreclation of the mining facilities and equipment for $2025,$ assuming Hecala extracted

$150,000$ tons of ore in $2025.150,000$ tons of ore in $2025.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

$4$: $150,000$

Required $5$

Determine the amount at which Hecala will record the mine.

Note: Do not round intermediate calculations. Enter your answer in whole dollars rounded to the nearest whole number. $150,000$ tons of ore In $2025.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

Required $2$

Required $3$

Required $4$

Required $5$

Calculate the depletion of the mine and the depreciation of the mining facilities and equipment for $2024,$ assuming that Hecala

uses the units

In New Mexico for $$10$ million. Additional costs and purchases included the following:

Note: Use tables, Excel, or a financlal calculator. Mining equipment $140,000$

Construction of various structures on site $68,000$After the minerals are removed from the mine, the equipment will be sold for an estimated residual value of $$10,000.$ The structures

will be torn down.

Geologists estimate that $800,000$ to $150,000$ tons of ore in $2025.$

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

$4$:

$5$:

Determine the amount at which Hecala will record the mine.

ns of ore can be extracted from the mine. After the ore is removed, the land will revert back to the

state of New Mexico.

The contract with the state requires Hecala to restore the land to its original condition after mining operations are completed in

approximately four years. Management has provided the following possible outflows for the restoration costs:

Hecala's credit$-$adjusted risk$-$free interest rate is $8\%.$ During $2024,$ Hecala extracted $120,000$ tons of ore from the mine. The company's

fiscal year ends on December $31.$

Required:

Determine the amount at which Hecala will record the mine.

Calculate the depletion of the mine and the depreclation of the mining facilitles and equipment for $2024,$ assuming that Hecala

uses the units$-$of$-$production method for both depreclation and depletion.

How much accretion expense will the company record In Its Income statement for the $2024$ fiscal year?

Are depletion of the mine and depreciation of the mining facilities and equipment reported as separate expenses in the income

statement?

During $2025,$ Hecala changed Its estimate of the total amount of ore originally In the mine from $800,000$ to $1,000,000$ tons.

Calculate the depletion of the mine and depreclation of the mining facilities and equipment for $2025,$ assuming Hecala extracted

$150,000$ tons of ore in $2025.$