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A&Z incurred $407,500 of capitalized costs to develop a uranium mine. The corporations geologists estimated that the mine would produce 815,000 tons of ore. During
A&Z incurred $407,500 of capitalized costs to develop a uranium mine. The corporations geologists estimated that the mine would produce 815,000 tons of ore. During the year, 163,000 tons were extracted and sold. A&Zs gross revenues from the sales totaled $521,600, and its operating expenses for the mine were $156,480. Calculate A&Zs depletion deduction.
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