The REE Mining Company plans to extract ore from a tract of land, and is required to restore the land to a condition suitable for recreation after extraction is completed. It is estimated that there are 3 000 000 (3 million) tonnes of ore, and that the land will have a value of $400 000 after restoration. The total cost of the resource is $7 600 000, which is broken down further into: land $6 300 000
Geophysical surveys 600 000
Restoration 700 000
What should be the charge to depletion expense per tonne of extracted ore?
a) $7.50
b) $2.53
c) $2.40
d) $4.28