The Orser Mining Company Acquired a Gold Mine for $8,000,000

Multiple Choice

The Orser Mining Company acquired a gold mine for $8,000,000.It is estimated that 40,000 ounces of gold can be extracted from the mine.In the first year of operations,15,000 ounces of gold were extracted.The Orser Mining Company would recognize:

A) An increase in profit of $3,000,000
B) Depreciation expense of $3,000,000
C) Cost of goods sold of $3,000,000
D) Depletion expense of $3,000,000