JRAcquires an Oil and Gas Property Interest for $300,000

Multiple Choice

J.R.acquires an oil and gas property interest for $300,000.J.R.expects to recover 50,000 barrels of oil.Intangible drilling and development costs are $80,000 and are charged to expense.Other expenses are $20,000.During the year,13,000 barrels of oil are sold for $170,000.J.R.'s depletion deduction is

A) $25,500.
B) $35,000.
C) $70,000.
D) $78,000.