Charles purchases an interest in a uranium mine for $2,500,000 on June 7, 2018. Recoverable tonnage is estimated at 500,000. During 2018, 25,000 tons are mined and sold for $800,000. Charles incurs $500,000 of expenses during 2018. The percentage depletion rate for uranium is 22%. What is the depletion deduction for 2018?

A : $125,000

B : $150,000

C : $176,000

D : $200,000

E : $250,000

According to the test bank 2019, the answer is B, $150,000. Please explain how to calculate this number. Thank you!