A Drilling Company Purchased a Mining Site for $500,000 on July

Multiple Choice

A drilling company purchased a mining site for $500,000 on July 1, 2012. The company expects to mine ore for the next 10 years and anticipates that a total of 100,000 tons will be recovered. During 2012 the company extracted 6,500 tons of ore. The depletion expense for the year 2012 is:

A) $37,700.
B) $42,000.
C) $32,500.
D) $27,300.