If a mining company extracts 1480000 tons in a period but only sells 1120000 tons, total depletion on the mine is based on the 1120000 tons. depletion is recognized on the 1480000 tons extracted. depletion is recognized on the 1120000 tons extracted and sold. a separate accumulated depletion account is set up to record depletion on the 360000 tons extracted but not sold.