In January 2020, Terminator Corp. purchased a mineral mine with the following related information: Description Amount Purchase
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In January 2020, Terminator Corp. purchased a mineral mine with the following related information:
| Description | Amount |
|---|---|
| Purchase price | $709,000 |
| Cost to develop mine | $63,000 |
| Estimated property value after ore extraction | $74,000 |
| Estimated ore reserves (tons) | 385,000 |
| Tons of ore extracted in 2020 | 152,000 |
| Tons of ore sold in 2020 | 120,000 |
For the year ended December 31, 2020, how much depletion should Terminator Corp. include in its cost of goods sold?
$197,922.08
$275,574.03
$217,558.44
$240,623.38
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