Jose Enterprises acquired the right to use 2,000 acres to mine for gold. The lease cost is ( $ 75,000 ), the related exploration costs on the property are ( $ 100,000 ). Intangible development costs incurred in opening the mine are ( $ 1,000,000 ) and the company has a cost of ( $ 50,000 ) for restoration when the mine is fully depleted. The company will use the units-of-production to deplete the asset. What amount should be capitalized for this natural resource asset? ( $ 1,175,000 ) ( $ 1,000,000 ) ( $ 1,225,000 )

Jose Enterprises acquired the right to use 2,000 acres to mine for gold. The lease cost is $75,000, the related exploration costs on the property are $100,000. Intangible development costs incurred in opening the mine are $1,000,000 and the company has a cost of $50,000 for restoration when the mine is fully depleted. The company will use the units-of-production to deplete the asset. What amount should be capitalized for this natural resource asset? $1,175,000 1+000,000 $1.225.000