1. In March, 2015, Mallory Mines Co. purchased a coal mine for $8,000,000. Removable coal is estimated at 1,500,000 tons. Mallory is required to restore the land at an estimated cost of $960,000, and the land should have a value of $840,000. The company incurred $2,000,000 of development costs preparing the mine for production. During 2015, 450,000 tons were removed and 300,000 tons were sold.

What is the cost of the coal mine to be depleted?

What is the depletion rate used in 2015?

What is the total amount of depletion expense recorded for 2015?

What is the total amount of inventory, if any, at Dec. 31, 2015?