Q7-60. A company purchased mineral assets costing $960,000, with an estimated residual value of $40,000, holding approximately 400,000 tons of ore. During the first year, 48,000 tons are extracted and sold. What is the amount of depletion for the first year?

a. $110,400

b. $96,000

c. $115,200

d. Cannot be determined from the data given