Last Chance Mine (LC) purchased a coal deposit for $750,000. It estimated it would extract 12,000 tons
Question:
a. What is Last Chance's cost depletion for years 1, 2, and 3?
b. What is Last Chance's percentage depletion for each year (the applicable percentage for coal is 10 percent)?
c. Using the cost and percentage depletion computations from the previous parts, what is Last Chance's actual depletion expense for each year?
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Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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