Kilpatrick Oil Corporation owns and operates four oil and gas properties that are classified for tax purposes

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Kilpatrick Oil Corporation owns and operates four oil and gas properties that are classified for tax purposes as four separate properties. Data for the four properties are presented below:

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REQUIRED: Compute the amount of percentage depletion that could be deducted on Kilpatrick’s tax return.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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Question Posted: Mar 08, 2024 10:01 AM

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Kilpatrick Oil Corporation owns and operates four oil and gas properties that are classified for tax purposes

Question:

Properties Total gross revenues subject to % depletion Net (loss) income before depletion 1 2 3 4 $400,000 $300,000 $100,000 $200,000 80,000 30,000 (5,000) 65,000

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Fundamentals Of Oil And Gas Accounting

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