On April 17, 2011, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $4,500,000. The company expects to extract 900,000 tons of coal during a four-year period. During 2011, 240,000 tons were extracted and sold immediately.

Required:
1. Calculate depletion for 2011.
2. Discuss the accounting treatment of the depletion calculated in requirement 1.