10. The total gross income of an oil company is P34,000,000 for a particular year, and the taxable income after taking all deductions, except for depletion, is P14,100,000. If the fixed depletion rate for oil wells is 22%, determine the allowable depletion allowance for the year.

10. The total gross income of an oil company is P34,000,000 for a particular year, and the taxable income after taking all deductions, except for depletion, is P14,100,000. If the fixed depletion rate for oil wells is 22%, determine the allowable depletion allowance for the year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

10. The total gross income of an oil company is P34,000,000 for a
particular year, and the taxable income after taking all
deductions, except for depletion, is P14,100,000. If the fixed
depletion rate for oil wells is 22%, determine the
allowable depletion allowance for the year.

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