Western Virginia Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The...

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Western Virginia Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost $2.25M to acquire; the annual gross revenues are expected to be $7.50 per ton, and the net revenues are expected to be $5.25 per ton. Percentage for coal is 10%. Compute the annual depletion on a cost basis Compute the annual depletion on a percentage basis Which method would give the better deduction? "percentage" or "cost" Western Virginia Coal Co. expects to produce 125,000 tons of coal annually for 15 years. The deposit cost $2.25M to acquire; the annual gross revenues are expected to be $7.50 per ton, and the net revenues are expected to be $5.25 per ton. Percentage for coal is 10%. Compute the annual depletion on a cost basis Compute the annual depletion on a percentage basis Which method would give the better deduction? "percentage" or "cost"

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a Compute the annual depletion on a cost basis Total Estimated coal to be p... View the full answer