Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe paid $300,000 for extraction rights. A geologist estimated that Santa Fe will recover 5,000 pounds of turquoise. During the past several years, 4,000 pounds were extracted. During the current year, Santa Fe extracted 1,500 pounds of turquoise, which it sold for $250,000. What is Santa Fe's cost depletion deduction for the current year? A) $60,000 B) $90,000 C) $190,000 D) $160,000

The answer is (A)

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 through 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 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows:

Ounces extracted per year
Year 1	Year 2	Year 3
50,000	150,000	100,000

What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent?

A) $200,000 B) $375,000 C) $400,000 D) $450,000 E) None of the choices are correct. The answer is (E)

Please provide explanation how to get these answers.

E) None of the choices are correct.