TChalla purchased the rights to a vibranium mineral interest for $3,500,000 on January 20, 2018. At that
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T’Challa purchased the rights to a vibranium mineral interest for $3,500,000 on January 20, 2018. At that time it was estimated that the recoverable units would be 500,000. During the year, 40,000 units were mined and 25,000 units were sold for $800,000. Dillon incurred expenses during 2018 of $450,000. The statutory percentage depletion rate for vibranium is 22%. Determine T’Challa’s maximum depletion deduction for 2018.
Related Book For
Intermediate accounting
ISBN: 978-0077647094
7th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
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