On January 15, 2019, Vern Purchased the Rights to a Mineral

On January 15, 2019, Vern purchased the rights to a mineral interest for $3,500,000.At that time, it was estimated that the recoverable units would be 500,000.During the year, 40,000 units were mined and 25,000 units were sold for $800,000.Vern incurred expenses during 2019 of $500,000.The percentage depletion rate is 22%.Determine Vern's depletion deduction for 2019.

A) $150,000
B) $175,000
C) $176,000
D) $200,000
E) $250,000