During 2019, a company purchased a mine at a cost of $4,371,000. The company spent an additional $770,000 getting the mine ready for its intended use. It is estimated that 470,000 tons of mineral can be removed from the mine and the residual value of the mine will be $770,000. During 2019, 62,000 tons of mineral were removed from the mine and 52,000 tons were sold.Which of the following statements is correct with respect to the accounting for the mine? (Do not round your intermediate calculations.)
A. The 2019 cost of goods sold was $483,600.
B. The book value of the mine decreased $483,600 during 2019.
C. The inventory of minerals was $576,600 at December 31, 2019.
D. The 2019 net income decreased $576,600 as a result of the mining during the year.
Answer: A
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