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
C
Business
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