Problemkkwest a gold mining company has operated a gold, Ask an Expert

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K.K.West, a gold mining company, has operated a gold mine in California for the last year.

It extracted 600 pounds during the last year. The IRS set the percentage depletion rate for gold at 15%. The mine is estimated to contain a total of 25,000 pounds of gold. The land initially cost $9.6 million. The company had a gross income of $4,000/ pound and the mining expenses of $1 million for the last year.

What is the maximum depletion for the mine in the last year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92724557

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