A firm began a mineral exploitation venture during the current year by spending (1) $40

million for the mineral rights; (2) $100 million exploring for the minerals, onefourth of

which were successful; and (3) $60 million to develop the site. Management estimated that

20 million tons of ore would ultimately be removed from the property. Wages and other

extraction costs for the current year amounted to $10 million. In total, 2 milli

on tons of ore

were removed from the deposit in the current year. The entire production for the period was

sold. Compute cost of goods sold under the successful efforts method.

A. $30 million

B. $12.5 million

C. $10 million

D. $22.5 million