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TChalla purchased a vibranium interest located in Wakanda for $15,000,000 (22% statutory depletion rate) on March 1, 2017, when recoverable reserves were estimated at 250,000
TChalla purchased a vibranium interest located in Wakanda for $15,000,000 (22% statutory depletion rate) on March 1, 2017, when recoverable reserves were estimated at 250,000 units. A total of 50,000 units were extracted in 2017 and 20,000 units were sold in 2017. Gross income from the property was $4,500,000 and taxable income without the allowance for depletion was $2,500,000. Determine the depletion deduction for 2017.
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