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12. (Oil depletion allowance ) A wealthy investor spends $1 million to drill and develop an oil well that has estimated reserves of 200,000 barrels.
12. (Oil depletion allowance ) A wealthy investor spends $1 million to drill and develop an oil well that has estimated reserves of 200,000 barrels. The well is to be operated over 5 years, producing the estimated quantities shown in the second column of Table 2.6. It is estimated that the oil will be sold for $20 per barrel. The net income is also shown
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