Thomas owns and operates T&R Oil Exploration Company is Harbor, Texas. During 2020, T&R purchased a Mud Processor for $200,000, Sand Separator for $19,000, and a 1,000 Gallon Fuel Truck-2013 Chevrolet 3500 for $45,000. During 2020, T&R extracted 50,000 barrels of oil and sold them for $50 per barrel. T&R had a basis of $10 million with estimated barrels of 600,000.

Required: a. Assume a seven-year life with half-year convention, compute the first year tax depreciation for each piece of equipment purchased in 2020.

b. Determine the depletion deduction for 2020.