A&Z incurred $$550,000$ of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine

would produce $1,100,000$ tons of ore. During the year, $220,000$ tons were extracted and sold. A&Z$\text{'}$s gross revenues from the

sales totaled $$704,000,$ and its operating expenses for the mine were $$211,200.$

Required:

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

Depletion deduction