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

On January 15, 2019, Dillon 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.Dillon incurred expenses during 2019 of $500,000.The percentage depletion rate is 22%.Determine
Dillon's depletion deduction for 2019.

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