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In 2010, 20,500 tons of ore were sold for $2,050,00. For tax purposes, oprating expenses of the mine were $500,000. The taxpayer may deduct either cost depletion or percentage depletion, which for the type ore production is 8 percent of production sold from the mine.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9409822

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