A mining company buys mineral rights for $20,000,000 and spends an additional $4,000,000 to develop the land. It expects to extract 600,000 tons of coal. Given this, the depletion rate would be $24,000,000 divided by 600,000, or $40 per ton. In the most recent period, the firm extracted 3,000 tons. The depletion expense would be …