In 2013,Sheridan Companypurchased a tract of land as a possible future plant site. In January, 2021, valuable sulphur deposits were discovered on adjoining property andSheridan Companyimmediately began explorations on its property. In December, 2021, after incurring $474000in exploration costs, which were accumulated in an expense account,Sheridandiscovered sulphur deposits appraised at $2610000more than the value of the land. To record the discovery of the deposits,Sheridanshould:

make no entry.

debit $474000to an asset account.

debit $2610000to an asset account.

debit $3084000to an asset account.