In 2010, Westmoreland Company Paid $3, 000, 000 for a Mining

Multiple Choice

In 2010, Westmoreland Company paid $3, 000, 000 for a mining tract with reserves of 100, 000 tons of ore, which the company planned to mine over a 20-year period.The company spent $500, 000 developing the mine.Westmoreland plans to spend $200, 000 for reclamation when mining has been completed, after which the land will have an estimated value of $600, 000.In 2010, Westmoreland mined and sold 8, 000 tons of ore.What depletion should Westmoreland record for the year?

A) $155, 000
B) $248, 000
C) $280, 000
D) $296, 000