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An oil well is subject to a 14% depletion allowance. The gross income for one year is $490,000. The taxable income excluding depletion is $130,000.

An oil well is subject to a 14% depletion allowance. The gross income for one year is $490,000. The taxable income excluding depletion is $130,000. Find the allowable depletion charge for that year.

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