A&Z incurred $352,500 of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine would produce 705,000 tons of ore. During the year, 141,000 tons were extracted and sold. A&Z's gross revenues from the sales totaled $451,200, and its operating expenses for the mine were $135,360. Required: Calculate A&Z's depletion deduction. Depletion deduction $ 70,500

A&Z incurred $352,500 of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine would produce 705,000 tons of ore. During the year, 141,000 tons were extracted and sold. A&Z's gross revenues from the sales totaled $451,200, and its operating expenses for the mine were $135,360. Required: Calculate A&Z's depletion deduction. Depletion deduction $ 70,500

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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