intermediate accountingplease show work and explain.Question 20 A company purchased land containing a copper deposit for $2,460,000 on January 7, 2024. The companyexpects to mine 680,000 tons of copper over the next 10 years, and the land is expected to have a residualvalue of $1,576,000. The company has also purchased mining equipment for $480,000 that will be used onlyat this site over the 10 years with an estimated residual value of $58,400. By the end of the first year, thecompany has mined and sold 58,000 tons of copper. What is the cost attributed to copper Inventory for 2024,assuming the company uses the units-of-production method?Multiple Choice$111,360$75,400O $117,560$133,360

Depreciable cost = Cost - Salvage Value Depreciation on land deposit for the year = Depreciable cost × Number of tons mined/Total expected mining over 10 years = ($2,460,000 - $1,576,000)×58000/680,000 = $75,400 Depreciation on mining equipment = Depreciable cost × Number of tons mined/Total expected mining over 10 years = ($480,000 - $58,400)×58000/680,000 = $35,960 Therefore cost attributed to copper inventor for 2024 = $75,400 + $35,960 = $111,360 Therefore correct answer is first option.