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tina acquires oil and gas property intrest for $200000 in the current year Estimated recoverable units 20000 units produced 6000 units sold 4000 IDCs $20,000

tina acquires oil and gas property intrest for $200000 in the current year

Estimated recoverable units 20000

units produced 6000

units sold 4000

IDCs $20,000

Percent depletion $25,000

What is the cost depletion if idcs are expenced

What is the cost depletion if idcs are capitalized

how much depletion is deducted on the tax return

should the idcs be capitalized or expenced? explain

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