depletion
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A self-employed taxpayer purchased a gold mine for $700,000 which is expected to produce 200,000 units of gold. During the current year, the taxpayer mined 140,000 units of gold and sold it for $3,700,000. If the taxpayer's net business income is $1,100,000 and the applicable percentage depletion for gold is 15%, what should the taxpayer take as deletion deducton？
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