Question
Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable units of copper are 90,000 tons. In 2020,
Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable units of copper are 90,000 tons. In 2020, Jack sold 12,000 tons and had $250,000 of gross income.
(a) Calculate Jack's percentage depletion for 2020 (the statutory percentage for copper is 15%).
(b) Calculate Jack's cost depletion for 2020
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Financial & Managerial Accounting
Authors: Jan Williams
16th Edition
78111048, 978-0078111044
