Lucky Strike Mine (LLC) Purchased a Silver Deposit for $1,500,000

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: $$\begin{array} { | c | c | c | } \hline { \text { Ounces extracted per year } } \\\hline \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\50,000 & 150,000 & 100,000 \\\hline\end{array}$$ What is Lucky Strike's depletion expense 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 these