All-That-Glitters Mining Company paid $52,000,000 for a parcel of land, including the gold mining rights. In addition, the company spent $7,515,000 to prepare the site for mining operations. It is estimated that the residual value of the asset will be $5,300,000. Geologists estimate the site contains a total of 235,000 ounces of gold.
a. What is the average depletion cost per ounce? Round your answer to the nearest cent. Use rounded answer value for subsequent calculations. $
b. If 16,200 ounces were mined in the first year of operation, what is the amount of the depletion cost? $