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  3. a company purchased land containing a copper depos

A company purchased land containing a copper deposit for $2,380,000 on January 7,2024. The company...

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Accounting

A company purchased land containing a copper deposit for $2,380,000 on January 7,2024. The company expects to mine 640,000 tons of copper over the next 10 years, and the land is expected to have a residual value of $1,452,000. The company has also purchased mining equipment for $440,000 that will be used only at this site over the 10 years with an estimated residual value of $56,000. By the end of the first year, the company has mined and sold 54,000 tons of copper. What is the cost attributed to copper inventory for 2024, assuming the company uses the units-of-production method?

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