Chester Inc. owns a silver mine. On 1/1/2020 the silver mine had a tax basis of $10,000,000 and estimated reserves of 5,000,000 ounces of silver. During 2020, Chester Inc. extracted 100,000 of silver. In 2020 Chester Inc sold 80,000 ounces of silver at a price of $20 per ounce. Chester's 2020 taxable income from the extraction activity (before any depletion deduction), totaled $320,000. Calculate Chester Inc's 2020 depletion deduction using percentage depletion. $300.000 $200,000 $150.000 $240.000 $10000