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Ore Mining Cost basis ($) Salvage value ($) $ - Total recoverable volume (tons) Amount sold this year (tons) Gross income this year ($) Mining
Ore Mining | |
Cost basis ($) | |
Salvage value ($) | $ - |
Total recoverable volume (tons) | |
Amount sold this year (tons) | |
Gross income this year ($) | |
Mining expenses this year($) | |
Percentage allowance (%) | |
Depletion rate per ton | |
Fiscal year (this year) | |
Cost depletion | |
Fiscal year (this year) | |
Percentage depletion | |
Gross income | $ - |
Depletion rate | |
Computed % depletion | $ - |
Maximum depletion deduction | |
Gross income | $ - |
Expenses | $ - |
Taxable income | $ - |
Deduction limit (50%) | 50% |
Maximum depletion deduction | $ - |
Allowable percentage deduction | $ - |
Optimal deletion expense to use | |
please fill the table and show how to find results in each cell
A coal mine expected to contain 6.5 million tons of coal was purchased at a cost of $30 million. One million tons of coal for steel making are produced this year. The gross income for this coal is $15,000,000 and operating costs (excluding depletion expenses) are $1,850,000. If you know that coal has a 10% depletion allowance, what will be the depletion allowance? Use Excel for a & b. (a) Cost depletion. (b) Percentage depletionStep by Step Solution
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