In January year 4, Vorst Co. purchased a mineral mine for
$2,640,000 with removable ore estimated at 1,200,000 tons. After
it has extracted all the ore, Vorst will be required by law to restore
the land to its original condition at an estimated cost of $220,000.
The present value of the estimated restoration costs is $180,000.
Vorst believes it will be able to sell the property afterwards for
$300,000. During year 4, Vorst incurred $360,000 of development
costs preparing the mine for production and removed and
sold 60,000 tons of ore. In its year 4 income statement, what
amount should Vorst report as depletion?