Santa Fe Purchased the Rights to Extract Turquoise on a Tract

Multiple Choice

Santa Fe purchased the rights to extract turquoise on a tract of land over a five-yearperiod. Santa Fe paid $300,000 for extraction rights. A geologist estimates that Santa Fe will recover 5,000 pounds of turquoise. During the current year, Santa Fe extracted 1,500 pounds of turquoise, which it sold for $200,000. What is Santa Fe's cost depletionexpense for the current year?

A) $110,000
B) $90,000
C) $300,000
D) $60,000
E) None of the choices are correct.