A Company Purchased a Mineral Deposit for $800,000

Multiple Choice

A company purchased a mineral deposit for $800,000.It expects this property to produce 120,000 tons of minerals and to have a salvage value of $50,000.In the current year,the company mined and sold 9,000 tons of minerals.Its depletion expense for the current period equals:

A) $15,000.
B) $60,000.
C) $150,000.
D) $56,250.
E) $139,500.