In 2000, purchased land for $5,600,000 that had a natural resource supply estimated at 4,000,000 tons. When the natural resources are removed, the land has an estimated value of $640,000. The required restoration cost for the property is estimated to be $800,000.

Development and road construction costs on the land were $560,000, and a building was constructed at a cost of $88,000 with an estimated $8,000 salvage value when all the natural resources have been extracted.

During 2001, additional development costs of $272,000 were incurred, but additional resources were not discovered. Production for 2000 and 2001 was 700,000 tons and 900,000 tons, respectively.

Compute the depletion charge for 2000 and 2001. Include depreciation on the building, if any, as a depletion charge. Round depletion charge to the nearest cent.

To compute the depletion charge for 2000 and 2001, we need to determine the depletion rate per ton and then calculate the depletion expense based on the production volume for each year.

Step 1: Calculate the depletion rate per ton:

Depletion rate per ton = (Purchase price of land - Estimated residual value of land) / Estimated total tons of natural resources
Depletion rate per ton = ($5,600,000 - $640,000) / 4,000,000 tons
Depletion rate per ton = $4.96 per ton

Step 2: Calculate the depletion expense for 2000:

Depletion expense for 2000 = Depletion rate per ton x Production volume for 2000
Depletion expense for 2000 = $4.96 per ton x 700,000 tons
Depletion expense for 2000 = $3,472,000

Step 3: Calculate the depletion expense for 2001:

Depletion expense for 2001 = Depletion rate per ton x Production volume for 2001
Depletion expense for 2001 = $4.96 per ton x 900,000 tons
Depletion expense for 2001 = $4,464,000

Step 4: Calculate the depreciation expense for the building:

Depreciation expense for the building = (Cost of building - Estimated salvage value) / Useful life in years

As the question does not provide the useful life of the building, we cannot calculate the depreciation expense.

Therefore, the depletion charge for 2000 is $3,472,000, and the depletion charge for 2001 is $4,464,000.