In January 2014,Router Mining Corporation Purchased a Mineral Mine for $7,200,000

question 29

Multiple Choice

In January 2014,Router Mining Corporation purchased a mineral mine for $7,200,000 with removable ore estimated by geological surveys at 4,320,000 tons.The property has an estimated value of $720,000 after the ore has been extracted.Router incurred $2,160,000 of development costs preparing the property for the extraction of ore.During 2014,540,000 tons were removed and 480,000 tons were sold.For the year ended December 31,2014,Router should include what amount of depletion in its cost of goods sold?

• A) $720,000
• B) $810,000
• C) $960,000
• D) $1,080,000

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