Monroe Minerals Company purchased a copper mine for $120,000,000.The mine was expected to produce 50,000 tons of copper over its useful life.During 2016,the company extracted 6,000 tons of copper.The copper was sold for $4,500 per ton.Assume that the company incurred $8,040,000 in operating expenses during 2016.Based on this information,how much net income would Monroe report in 2016?

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The net income is calculated as follows: Revenue from copper sales (6,000 tons x $4,500) = $27,000,000. Depletion expense (cost of mine $120,000,000 / 50,000 tons x 6,000 tons) = $14,400,000. Operating expenses = $8,040,000. Net income = Revenue - Depletion expense - Operating expenses = $27,000,000 - $14,400,000 - $8,040,000 = $4,560,000.

Monroe Minerals Company Purchased a Copper Mine for $120,000,000