A&Z incurred $$437,500$ of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine would

produce $875,000$ tons of ore. During the year, $175,000$ tons were extracted and sold. A&Z$\text{'}$s gross revenues from the sales totaled

$$560,000,$ and its operating expenses for the mine were $$168,000.$

Required:

Calculate A&Z$\text{'}$s depletion deduction.

Depletion deduction