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Harry Potter has working interest in oil and gas properties. Mr. Potter has gross income of $50,000, production taxes of $5,000, lease operating expense of
Harry Potter has working interest in oil and gas properties. Mr. Potter has gross income of $50,000, production taxes of $5,000, lease operating expense of $25,000, intangible drilling costs of $10,000. The taxable income before depletion is $10,000. What is the net business income? Don't forget depletion and any limitations if applicable. Group of answer choices $5,000 $2,500 0 $10,000
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