Capitalization

Question 1

Cost of natural resource to be depleted =

Answer 1

(Purchase price + Cost to prepare the site - Expected sales price of land upon completion) / Total tons to be extracted

Question 2

Average Accumulated Expenditure (AAE)

Answer 2

Exp Amount * (months in use /12)
Ex. $30,000 * (9/12)
In effect April 1
April-Dec are 9 months