On January 1, 2011, Cooper Tree Company (CTC) Purchases a Copper

Multiple Choice

On January 1, 2011, Cooper Tree Company (CTC) purchases a copper mine for €10,000,000.The mine is estimated to have 20 million tons of copper and no residual value.CTC estimates that it will take 10 years to extract all the copper contained in the mine.CTC spends an additional €2,000,000 during the early part of 2011 preparing the mine.During 2011, CTC extracts and sells 3 million tons of copper.On CTC's December 31, 2011 statement of financial position, at what net amount is the copper mine reported?

A) €10,200,000
B) €10,800,000
C) €9,000,000
D) €8,500,000