What the amount of depletion recognized

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Question - On July 2, 2020, Boston Inc. purchased the mineral rights to a granite deposit for $1,600,000. It is estimated that the recoverable granite will be 400,000 tons. During 2020, 100,000 tons of granite was extracted. What the amount of depletion recognized for 2020?

A. $200,000

B. $120,000

C. $240,000

D. $400,000

Reference no: EM133162279

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