Problem 07-36 (Static) [LO 7-10] A&Z incurred $450,000 of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine would produce 900,000 tons of ore. During the year, 215,000 tons were extracted and sold. A&Z's gross revenues from the sales totaled $689,000, and its operating expenses for the mine were $200,000. Required: Calculate A&Z's depletion deduction. Depletion deduction $ 105,000

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter11: Long-term Assets
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Problem 6PB: Underwoods Miners recently purchased the rights to a diamond mine. It is estimated that there are...
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Problem 07-36 (Static) [LO 7-10]
A&Z incurred $450,000 of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine would
produce 900,000 tons of ore. During the year, 215,000 tons were extracted and sold. A&Z's gross revenues from the sales totaled
$689,000, and its operating expenses for the mine were $200,000.
Required:
Calculate A&Z's depletion deduction.
Depletion deduction
$ 105,000
Transcribed Image Text:Problem 07-36 (Static) [LO 7-10] A&Z incurred $450,000 of capitalized costs to develop a uranium mine. The corporation's geologists estimated that the mine would produce 900,000 tons of ore. During the year, 215,000 tons were extracted and sold. A&Z's gross revenues from the sales totaled $689,000, and its operating expenses for the mine were $200,000. Required: Calculate A&Z's depletion deduction. Depletion deduction $ 105,000
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