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A relatively small privately owned coal-mining company has the sales results summarized below. Determine the annual percentage depletion for the coal mine. Assume the companys
A relatively small privately owned coal-mining company has the sales results summarized below. Determine the annual percentage depletion for the coal mine. Assume the companys taxable income is $110,000 each year.
Year | Sales, Tons | Spot Sales Price, $/Ton |
1 | 34,300 | 9.82 |
2 | 50,100 | 11 |
3 | 71,900 | 11.23 |
Year | Gross Income, $ | Depletion amount | 50% of the taxable amount | Allowed Depletion |
1 | ||||
2 | ||||
3 |
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