In january of the current year, Allegro Co. Purchased the Exbar Mine at a cost of $25,000,000.

In january of the current year, Allegro Co. Purchased the Exbar Mine at a cost of $25,000,000. The mine was estimated to contain 1,000,000 tons of ore and have a residual value of $2,500,000 after mining operations are completed. During the year, 315,000 tons of ore were removed from the min and sold. At year-end, the book value of the mine is