Order the answer to: A sand and gravel pit purchased for $900,000 is expected

Best Writers business-economics Order the answer to: A sand and gravel pit purchased for $900,000 is expected

business-economics

Order the answer to: A sand and gravel pit purchased for $900,000 is expected

Question A sand and gravel pit purchased for $900,000 is expected to yield 50,000 tons of gravel and 80,000 tons of sand per year. The gravel will sell for $6 per ton and the sand for $9 per ton. (a) Determine the depletion charge according to the percentage depletion method. The percentage depletion rate for sand and gravel is 5%. (b) If taxable income is $100,000 for the year, is this depletion charge allowed? If not, how much is allowed?
Subject business-economics
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