In March, 2007, Tylor Mines Co.purchased a coal mine for $6,000,000.Removable coal is estimated at 1,500,000 tons.Tylor is required to restore the land at an estimated cost of $720,000, and the land should have a value of $630,000.The company incurred $1,500,000 of development costs preparing the mine for production.During 2007, 450,000 tons were removed and 300,000 tons were sold.The total amount of depletion that Tylor should record for 2007 is
A) $1,374,000.
B) $1,518,000.
C) $2,061,000.
D) $2,277,000.
Correct Answer:
Verified
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