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Financial Accounting

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Mineral Deposit: Book Value at End of Year 2 after Depletion Exp

FINACT-RICYQE

A company purchased mining property (mineral rights) estimated to contain 7,350,000 tons of ore for \$1,837,500. The land is leased so this amount is just for mineral rights.

In Year 1 it mined and sold 857,000 tons of ore and in Year 2 it mined and sold 943,000 tons of ore. What was the book value of the mineral deposit at the end of Year 2?