Mr. H. Salt purchased an 1 /8 interest in a producing oil well for $45,000. Recoverable oil reserves for the well were estimated at that time at 15,000 barrels, 1 /8 of which represented Mr. Salt's share of the reserves. During the subsequent year, Mr. Salt received $12,000 as his 1 /8 share of the gross income from the sale of 1000 barrels of oil. From this amount, he had to pay $3000 as his share of the expense of producing the oil. Compute Mr. Salt's depletion allowance for the year.