Fidelak Corp. has a mine $($non$-$oil$/$gas$)$ expected to produce $2,800$ units. Fidelak paid

$$140,000$ for the mine. This year Fidelak will obtain $100$ units from the mine. The

applicable rate for percentage depletion is $15\%.$ They had gross income from the mine of

$$50,000,$ and had net income before depletion of $$20,000.$ What is the maximum

depletion Fidelak can deduct?

  

Answer rating: 100% (QA)

To calculate the maximum depletion deduction for Fidelak Corp we need to determine the depletion bas... View the full answer