Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable

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Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable units of copper are 90,000 tons. In 2020, Jack sold 12,000 tons and had $250,000 of gross income.

(a) Calculate Jack's percentage depletion for 2020 (the statutory percentage for copper is 15%)?

(b) Calculate Jack's cost depletion for 2020?

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Intermediate Accounting Volume 1

ISBN: 9781260881233

8th Edition

Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel

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Posted Date: Apr 01, 2023 12:52 AM

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Jack purchased a copper mine in Utah in 2020. Jack's acquisition costs were $4,000,000. The estimated recoverable

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a To calculate Jacks percentage depletion for 2020 we first need to determine the depletion rate ... View the full answer

Intermediate Accounting Volume 1

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