Solution-What amount of depletion should drill-well corp

What amount of depletion should drill-well corp deduct

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Problem 1: Corporation purchased an interest in a oil well for $800,000. During the year, 4,000 barrels of oil were sold from an estimated reserve of 160,000 barrels. Gross revenue from the sale of the oil equaled $200,000 and expenses, other than depletion, totaled $150,000. Drill-Well is not an integrated oil company. Given a statutory depletion rate of 15 percent, what amount of depletion should Drill-Well Corporation deduct for the year?

Reference no: EM132810041

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What amount of depletion should drill-well corp deduct

Reference no: EM132810041

Reference no: EM132810041

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