please solve this tax problem.

(10 points) Holt 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, Holt sold 40,000 tons of iron ore. Holt'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 Holt's depletion deduction for the first year and undepleted basis at the end of year 1? b. During the second year, Holt sold 30,000 tons of iron ore. Holt's gross income from the iron ore was $700,000 and taxable income before depletion was $215,000 in the second year. What is Holt's depletion deduction for the second year and undepleted basis at the end of year 2