Agranite mine has a 14% depletion allowance. Last year, the local granite mine had gross income of $171,000. If expenses, not including depletion, are $129,120, what is the allowable depletion deduction? O $18,077 $5,863 $23,940 O $20,940 None of the above

Agranite mine has a 14% depletion allowance. Last year, the local granite mine had gross income of $171,000. If expenses, not including depletion, are $129,120, what is the allowable depletion deduction? O $18,077 $5,863 $23,940 O $20,940 None of the above

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Agranite mine has a 14% depletion allowance. Last year, the local granite mine had gross income of
$171,000. If expenses, not including depletion, are $129,120, what is the allowable depletion
deduction?
O $18,077
$5,863
O $23,940
O $20,940
None of the above

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