Salter Mining Company purchased the Northern Tier Mine for $96 million cash. The mine was estimated to contain 5.17 million tons of ore and to have a residual value of $1.2 million.

During the first year of mining operations at the Northern Tier Mine, 95,000 tons of ore were mined, of which 12,000 tons were sold.

a.	Prepare a journal entry to record depletion during the year.