TB MC Qu$.10-80($Algo$)$ Santa Fe purchased the rights to extract...

Sierra Mines purchased the rights to extract turquoise on a tract of land over a five$-$year period. Sierra Mines paid $$602,250$ for extraction rights. A geologist estimates that Sierra Mines will recover $8,250$ pounds of turquoise. During the current year, Sierra Mines extracted $2,475$ pounds of turquoise, which it sold for $$386,000.$ What is Sierra Mines's cost depletion deduction for the current year?

Multiple Choice

$$120,450$

$$180,675$

$$218,810$

$$602,250$

None of the choices are correct.