a gold mine that is expected to produce 30,000 ounces of gold is purchased for 2,400,000. The goldcan be sold for 450 ounce; however it costs 265 per ounce for mining and processing costs. If 3,500 ounces a produced this year and for gold the depletion allowance as percentage of gross sales is 15%, the depletion allowance using unit depletion method is

a. 280,000

b. 300,000

c. 260,000

d. 295,000