During 2022, a company purchased a mine at a cost of $4,459,000. The company spent an additional $790,000 getting the mine ready for its intended use. It is estimated that 490,000 tons of mineral can be removed from the mine and the residual value of the mine will be $790,000. During 2022, 64,000 tons of mineral were removed from the mine and 54,000 tons were sold.

Which of the following statements is incorrect with respect to the accounting for the mine?

Note: Do not round your intermediate calculations.