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Study I Homework Help Flannery Company engages in the exploration and development of many types of natural resources. In the last two years, the company has engaged in the following activities: Jan. 1, Year 1 Purchased for $1,480,000 a silver mine estimated to contain 125,000 tons of silver ore. July 1, Year 1 Purchased for $1,860,000 cash a tract of land containing timber estimated to yield 2,420,000 board feet of lumber. At the tine of purchase, the land had an appraised of $149,000. Feb. 1, Year 2 Purchased for $3,040,000 a gold mine estimated to yield 76,000 tons of gold-veined ore. Sept. 1, Year 2 Purchased oil reserves for $1,387,000. The reserves were estimated to contain 255,000 barrels of oil, of which 14,000 would be unprofitable to pump. Required For all requirements, round "per" values to 2 decimal places and final answers to the nearest whole dollar amount.) a. Determine the amount of depletion expense that would be recognized on the Year 1 income statement for each of the two reserves, assuming 14,600 tons of silver were mined, and 570,000 board feet of lumber were cut. b. Determine the amount of depletion expense that would be recognized on the Year 2 income statement for each of the four reserves, assuming 28,000 tons of silver are mined, 330.000 board feet of lumber are cut, 4.400 tons of gold ore is mined, and 82.000 barrels of oil are extracted c. Prepare the portion of the December 31, Year 2, balance sheet that reports natural resources. Complete this question by entering your answers in the tabs below

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