What is total gross income until mine is totally depleted

Assignment Help Finance Basics

Reference no: EM132183967

Question - A gold mine was purchased for $10 million. It has an anticipated gross income of $5.0 million per year for years 1 to 5 and $3.0 million per year after year 5 Assume that depletion charges do not exceed 50% of taxable income. Compute annual depletion amounts for the mine.

(a) How long will it take to recover the initial investment at-0%? (% depletion 15%).

(b) What is the total gross income until the mine is totally depleted?

Reference no: EM132183967

Questions Cloud

Describe at least two challenges that supply chains face : A great deal of manufacturing is done outside of the United States, which presents various challenges to supply chains.

Discuss how the problem statement informed : Discuss the key points in the literature review and how the author used this section to identify the gap or problem addressed in the study

Buys raw materials from regina fabrics on credit : Your company, a small start-up corporation, buys raw materials from Regina Fabrics on credit.

What is demand in small claims court procedure : What is a demand in a small claims court procedure specific to California, and is it required?

What is total gross income until mine is totally depleted : A gold mine was purchased for $10 million. Compute annual depletion amounts for the mine. What is the total gross income until the mine is totally depleted

What is the range of services they typically offer : The chief executive officer (CEO) of your firm is being asked to approve a major expenditure for a new warehouse.

Analyze the encryption protocols used in wireless networks : Analyze the encryption protocols used in wireless networks today. Assess how current encryption protocols have addressed the weaknesses of WEP.

Create a list of five questions you would ask the company : Cyber security is one of the most critical issues the U.S. and across the globe today. With the threats being real, and the need is pressing to create a good.

What are time limits in regards to small claims process : In small claims court procedures specific to California, what are the time limits in regards to the small claims process?

User Account

All Pages