QUESTION Khowia Oil Company lanes a plot of land from Mr Al Hujall giving Mr Al Hujali a royalty Interest of 1/8 of gross revenue. Lacking the funds to develop the property, Khowa O assigns the interest to Somia on Company reserving 1/5 of 7/8 of net profit. Revenue for the first year of operations totaled $800,000 and cost of development and operations totaled S250,000. The contract between Khowia and Somia also indicates that yearly maintenance expenses of $50,000 will be allowed as deductions. How much income wil M A Hujali received and how much cost it needs to pay? Income of $62,500 and cost of $0 Income of $400,000 and cost of $300,000 Income of $100,000 and cost of $0 oc Income of $100,000 and cost of $300,000