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An oil well is subject to a 15% depletion allowance. The gross income for one year is $250,000. The taxable income excluding depletion is $180,000.

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An oil well is subject to a 15% depletion allowance. The gross income for one year is $250,000. The taxable income excluding depletion is $180,000. Find the allowable depletion charge for that year. $10,500 $38,752 $37,500 $180,000

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