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Lindsey purchased a uranium interest for $10,000,000 on January 3, 2020, when recoverable reserves were...

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Accounting

Lindsey purchased a uranium interest for $10,000,000 on January 3, 2020, when recoverable reserves were estimated at 200,000 units. A total of 17,000 units were extracted in 2020 and 10,000 units were sold in 2020. Gross income from the property was $1,500,000 and taxable income without the allowance for depletion was $1,400,000. Determine her depletion deduction for 2020. The percentage depletion rate is 22%.

a. $0

b. $350,000.

c. $500,000.

d. $800,000.

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