Question 13. Beta Mining purchased a gold reserve in 2023 for $10,000,000. Beta's geologists estimate that the reserve had 20,000 ounces of recoverable gold at the time of purchase. During 2023, Beta mined 2,500 ounces and sold 1,600 ounces for gross proceeds of $3,200,000. Beta's taxable income (before depletion) in respect to this mine is $1,000,000. Compute Beta's allowance for cost depletion and percentage depletion (prior to consideration of which one Beta will choose to deduct). [The percentage depletion rate for gold is 15%; the taxable income limit is 50%.] $1,250,000 cost depletion; $500,000 percentage depletion $800,000 cost depletion; $500,000 percentage depletion $1,250,000 cost depletion; $480,000 percentage depletion $800,000 cost depletion; $480,000 percentage depletion