Julie owns an oil field and uses cost depletion. On 1/1/20, her engineers estimate there are 300,000 barrels remaining in the reservoir. In 2020, Julie extracts 100,000 barrels and sells 80,000. Her basis in the field at 1/1/20 was $10,500,000. What is Julies basis at 12/31/20?

a. None of these

b. $7,000,000

c. $2,100,000

d. $7,700,000

e. $2,800,000