Compute and record depletion of natural resources
Asked Aug 25, 2012, 09:45 AM
Mayfair mining company had a total depletable capitalized cost of 656,000 for a mine acquired in early 2013. It was estimated that the mine contained 820,00 tons of recoverable ore when production began. During 2013, 20,500 tons were mined, and 41,00 tons were mined in 2014. What would be the amount of cost depletion allowable for tax purpose in 2031, assuming that capitalized mineral cost are the same tax purpose as for financial accounting purpose?