Lindsey purchased a uranium interest for $10,000,000 on January 3, 2019, when recoverable reserves were estimated at 200,000 units.A total of 10,000 units were extracted in 2019 and 7,000 units were sold in 2019.Gross income from the property was $2,800,000 and taxable income without the allowance for depletion was $1,000,000.Determine her depletion deduction for 2019.

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The Answer of Lindsey purchased a uranium interest for $10,000,000 on January 3, 2019, when recoverable reserves were estimated at 200,000 units.A total of 10,000 units were extracted in 2019 and 7,000 units were sold in 2019.Gross income from the property was $2,800,000 and taxable income without the allowance for depletion was $1,000,000.Determine her depletion deduction for 2019.

Lindsey Purchased a Uranium Interest for $10,000,000 on January 3