In January year $1,$ the Under Mine Corporation purchased a mineral mine for $$3,400,000$ with removable ore estimated by geological

surveys at $4,000,000$ tons. The property has an estimated value of $$200,000$ after the ore has been extracted. The company incurred

$$800,000$ of development costs preparing the mine for production. During year $1,400,000$ tons were removed and $375,000$ tons were

sold. What is the amount of depletion that Under Mine should record for year $1?$

$$420,000$

$$375,000$

$$400,000$

$$393,750$