On january 15, 2019, Vern purchased the rights to a mineral interest for $2,500,000. At the time it was estimated that the recoverable units would be 500,000. During the year, 42,000 units were mined and 26,500 units were sold for $820,000. Vern incurred expenses during 2019 of $500,000. The percentage depletion rate is 22%. Determine Vern's depletion deduction for 2019.

Answer rating: 100% (QA)

To determine Verns depletion deduction for 2019 we need to calculate both the cost depletion and per... View the full answer