Lassiter Company produces iron ore. It purchased a property for $250,000 during the year. Engineers estimate that 100,000 tons of iron ore are recoverable from the property. During the first year, Lassiter sold 40,000 tons of iron ore. Lassiter's gross income from the iron ore was $600,000 and taxable income before depletion was $280,000. Assume the statutory depletion rate for iron ore is 15%. a. What is Lassiter's depletion deduction (answer in blank 1) for the first year and undepleted basis (answer in blank 2) at the end of year 1? b. During the second year, Lassiter sold 30,000 tons of iron ore. Lassiter's gross income from the iron ore was $700,000 and taxable income before depletion was $215,000 in the second year. What is Lassiter's depletion deduction for the second year (answer in blank 3) and undepleted basis (answer in blank 4) at the end of year 2? AJ AJ A/