Question: What is the allowable depletion charge using the cost depletion method for year 1 only of the salt mine investment described below? Cost to acquire

What is the allowable depletion charge using the cost depletion method for year 1 only of the salt mine investment described below?

Cost to acquire mine rights = $30,000

Estimated mine size = 2,000,000 pounds

Amount sold in year 1 = 700,000 pounds

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