1-.OnJanuary 15,2020, Dillon purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the recoverable units would be 500,000. During the year,40,000 units were mined and 25,000 units were sold for $800,000. Dillon included expenses during 2019 of $500,000. The percentage depletion rate is 22%. Determine Dillon's depletion deduction for 2020