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25. Jose acquires an oil and gas property interest for $800,000. Jose expects to recover 200,000 barrels of oil. Intangible drilling and development costs are
25. Jose acquires an oil and gas property interest for $800,000. Jose expects to recover 200,000 barrels of oil. Intangible drilling and development costs are $175,000 and are charged to expense. Other expenses are $50,000. During the year, 25,000 barrels of oil are sold for $1,000,000. Jose's depletion deduction is A) $120,000. B) $75,000. C) $160,000 D) $600,000
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