Question: Driller Incorporated has $ 4 9 8 , 2 0 0 of unrecovered capitalized costs in Well # 8 3 . This year, cost depletion

Driller Incorporated has $498,200 of unrecovered capitalized costs in Well #83. This year, cost depletion on the well is $356,000. Which of the following
statements is true?
Multiple Choice
If Driller's allowable percentage depletion is $313,000, Driller will deduct cost depletion.
If Driller's allowable percentage depletion is $515,000, Driller will deduct percentage depletion.
If Driller's allowable percentage depletion is $515,000, Driller's depletion deduction is limited to $498,200.
Both if Driller's allowable percentage depletion is $313,000, Driller will deduct cost depletion and if Driller's allowable percentage depletion is
$515,000, Driller will deduct percentage depletion are both true statements.
Driller Incorporated has $498,200 of unrecovered capitalized costs in Well #83.

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