Gaspe Mining Corp. bought mineral-bearing land for $600,000. Engineers and geologists estimate that the site will yield 400,000 kilograms of economically removable ore. The land will have a net recoverable value of $80,000 after the ore is removed; this is the combination of site restoration costs and the resale value of the property. To work the property, Gaspe built structures and sheds on the site that cost $160,000; these will last 10 years. Machinery that cost $144,000 was installed at the mine, and the added cost for installation was $3,000. This machinery should last 15 years; like that of the structures, the usefulness of the machinery is confined to these mining operations. For both structures and machinery, dismantling and removal costs when the property has been fully worked will approximately equal the value of the machinery at that time; therefore, Gaspe does not plan to use the structures or the machinery after the minerals have been removed. In the first year, Gaspe removed only 12,000 kilograms of ore; however, production was doubled in the second year. It is expected that all of the removable ore will be extracted within eight years from the start of operations