Early in the Current Year,Tokay Co

Multiple Choice

Early in the current year,Tokay Co.purchased the Silverton Mine at a cost of $20,000,000.The mine was estimated to contain 200,000 tons of ore and to have a residual value of $5,000,000 after mining operations are completed.During the year,105,000 tons of ore were removed from the mine.At year-end,the book value of the mine (cost minus accumulated depletion) is:

A) $15,000,000.
B) $12,125,000.
C) $7,875,000.
D) Less than $10,000,000.