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. $139,500.
B. $15,000.
C. $60,000.
D. $150,000.
E. $56,250.
Answer: E
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