The Big Dog mine in Alaska harvests zinc. It was purchased in Year 0 for $80,000, and at that time, the mine contained 1000 lbs of zinc. The mine has sales and taxable income results summarized below.

Year Extracted Zinc (lbs) Sales ($) Taxable Income ($)

1 60 18,700 20,000

2 200 60,000 27,000

3 120 57,950 40,000

(a) Determine the percentage depletion charge for Year 1.

(b) Determine the cost depletion charge for Year 1.

(c) Which depletion charge should Big Dog take for Year 1?

I am not sure how to approach this and need help