In January 2011, Vance 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. Vance incurred $2,160,000 of development costs preparing the property for the extraction of ore. During 2011, 540,000 tons were removed and 480,000 tons were sold. For the year ended December 31, 2011, Vance 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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The Answer of In January 2011, Vance 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. Vance incurred $2,160,000 of development costs preparing the property for the extraction of ore. During 2011, 540,000 tons were removed and 480,000 tons were sold. For the year ended December 31, 2011, Vance 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

In January 2011, Vance Mining Corporation Purchased a Mineral Mine