You purchase mineral rights for $80,000, but you lease the rights to another company keeping one-eighth royalty interest.Reserves at the end of the year are 20,000 barrels, and production and sales for the year is 3,000 barrels (which apply to you).You receive royalties for the year of $40,000.Calculate yourmaximumdepletion deduction for the year.Consider both cost and percentage depletion deductions under the tax laws, if any.