Please solve as necessary and use the following excel template.

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 depletion.

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) A Percentage depletion Gross income Depletion rate Computed % depletion $ Maximum depletion deduction Gross income Expenses Taxable income Deduction limit (50%) Maximum depletion deduction $ 50% Allowable percentage deduction $ Optimal deletion expense to use