Question $16$ of $25$

Swifty Resources Company acquired a tract of land containing an extractable natural resource. Swifty is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be $2520000$ tons and that the land will have a value of $$1040000$ after restoration.

Relevant cost information follows:

Land

$$7560000$

Estimated restoration costs $1392800$

If Swifty maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

$$3\mathrm{.}14$

$$2\mathrm{.}59$

$$3\mathrm{.}55$

$$3\mathrm{.}00$