Lucky Strike Mine (LLC) purchased a silver deposit for $1,500,000. It estimated it would extract 500,000 ounces of silver from the deposit. Lucky strike mined the silver and sold it reporting gross receipts of $1.8 million, $2.5 million, and $2 million for years 1 through 3 respectively. During years 1-3 Lucky Strike reported net income (loss) from the silver deposit activity in the amount of (100,000), $400,000, and $100,000, respectively. In years 1-3, Lucky Strike actually extracted 300,000 ounces of silver as follows:

What is Lucky Strikes depletion expense for year 2 if the applicable percentage depletion for silver is 15%?

A. 200,000

B. 375,000

C. 400,000

D. 450,000

E. None of these

Note: A small explanation to solve this problem will be greatly appreciated.