Question: A&Z incurred $ 4 9 2 , 5 0 0 of capitalized costs to develop a uranium mine. The corporation s geologists estimated that the

A&Z incurred $492,500 of capitalized costs to develop a uranium mine. The corporations geologists estimated that the mine would produce 985,000 tons of ore. During the year, 197,000 tons were extracted and sold. A&Zs gross revenues from the sales totaled $630,400, and its operating expenses for the mine were $189,120.
Required:
Calculate A&Zs depletion deduction. The answer is NOT $98,500

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