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U. JJ.UJU d. $5.000 7. Oil and gas properties enjoy a 15% statutory depletion allowance. Assume Winona has an oil well in her backyard. Gross

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U. JJ.UJU d. $5.000 7. Oil and gas properties enjoy a 15% statutory depletion allowance. Assume Winona has an oil well in her backyard. Gross income from the well is $100,000 for the year. Taxable income from the oil well, before the depletion deduction, is $60,000. Cost depletion for the year is $20,000. What is Winona's depletion deduction? a. S15,000 c. S30,000 b. $20,000 d. $60.000

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