Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable
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Question:
Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable units of copper are 90,000 tons. In 2020, Jack sold 12,000 tons and had $250,000 of gross income.
(a) Calculate Jack's percentage depletion for 2020 (the statutory percentage for copper is 15%)?
(b) Calculate Jack's cost depletion for 2020?
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260881233
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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