According to the cost depletion method

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Reference no: EM131533112

Rayanaer Forrest Resources purchased a small tractof mberland for $70.000 that contained 25.000 trees the value of the bare land was estimated to be $20.000. The annual percentage depletion factor for timber is 10% In the first year of operation, the lumber company cut down 7000 trees. According to the cost depletion method, the depletion deduction for year 1 would be closest?

Reference no: EM131533112

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