In Early 2022, T Boone Pickens purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the recoverable units would be 500,000. During the year, 40,000 units were mined and 25,000 units were sold for $800,000. Mr. Pickens incurred expenses during 2022 of $500,000. The percentage depletion rate is 22%. Determine Dillons depletion deduction for 2022.

	a.	$200,000.
	b.	$175,000.
	c.	$150,000.
	d.	$176,000.

Sam Wilson purchased a new business asset (five-year personalty) on March 28, 2022, at a cost of $40,000. Sam takes additional first-year depreciation but does not elect 179 expense on the asset. Determine the cost recovery deduction for 2022.

	a.	$8,000
	b.	$12,800
	c.	$0
	d.	$40,000