Required information

Either Ore Corp is a mining company operating copper and nickel mines in northern Minnesota. It recently purchased a new piece of equipment costing $$1,000,000$ which will be used to load rail cars with ore. The machine is expected to have a useful life of $15$ years or $7,000,000$ tons of material loaded, and has a residual value of $$200,000.$ It loads $600,000$ tons of material in its first year.

What amount of depreciation expense will Either Ore Corp record in year $1$ if it uses the straight$-$line method?

Multiple Choice

$$13,333$

$$106,667$

$$53,333$

$$66,667$