Question
1) Last Chance Mine (LC) purchased a coal deposit for $720,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined
1) Last Chance Mine (LC) purchased a coal deposit for $720,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts of $1 million for year 1. During year 1, LC reported net income from the coal deposit activity in the amount of $40,000. In year 1, LC actually extracted 3,000 tons of coal. What is Last Chances cost depletion for years 1?
2) Last Chance Mine (LC) purchased a coal deposit for $720,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts of $1 million for year 1. During year 1, LC reported net income from the coal deposit activity in the amount of $80,000. In year 1, LC actually extracted 2,000 tons of coal. What is Last Chances percentage depletion for year 1 (the applicable percentage for coal is 10 percent)?
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The ASQ Certified Food Safety And Quality Auditor
Authors: Steven Wilson
4th Edition
1951058186, 978-1951058180
