Annie Owns a Mine, Which Cost Her $460,000 Several Years

Multiple Choice

Annie owns a mine, which cost her $460,000 several years ago. In prior years she had claimed depletion in the amount of $140,000. It is estimated that 800,000 tons of minerals remained in the mine at the beginning of the year. During the current year, Annie mined and sold 180,000 tons. What is the amount of Annie's cost depletion deduction for the current year?

A) $56,000
B) $72,000
C) $80,500
D) $103,500
E) $180,000