.

A coal company invests $12 million in a mine estimated to have 20 million tonnes of coal and no

residual value. It is expected that the mine will be in operation for 5 years. In the first year,

1,000,000 tonnes of coal are extracted and sold. What is the depreciation included in cost of

goods sold for the first year?

A)

$60,000.

B)

$600,000.

C)

$240,000.

D)

Cannot be determined from the information provided.