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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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