A stone and gravel quarry in Texas can use a percentage depletion rate of 5% of gross income, or a cost depletion rate of $1.28 per ton. Quarry first cost = $3.2 million; Estimated total tonnage = 2.5 million tons; Tonnage this year = 65,000; Gross income = $40 per ton. Of the two depletion charges, the method and larger amount are