Answer:
The correct answer is letter "B": reported on the balance sheet as a deduction from the cost of the mineral deposit.
Explanation:
Depletion refers to an accounting method used to allocate extraction costs for quarrying minerals or any other natural resource such as oil. Only when the costs of the resource were capitalized, the costs of the extraction are allocated over the periods when they were extracted. The allowance can be registered as a percentage or a cost.
On the balance sheet, depletion is deducted from the cost of the mineral deposit of the firm.
