The Weber Company Purchased a Mining Site for $1,750,000 on July

Multiple Choice

The Weber Company purchased a mining site for $1,750,000 on July 1.The company expects to mine ore for the next 10 years and anticipates that a total of 400,000 tons will be recovered.The estimated residual value of the property is $150,000.During the first year,the company extracted 6,500 tons of ore.The depletion expense is

A) $15,000
B) $16,000
C) $17,500
D) $26,000