Rick Purchased a Uranium Interest for $10,000,000 on January 3,2014,when

question 23

Essay

Rick purchased a uranium interest for $10,000,000 on January 3,2014,when recoverable reserves were estimated at 200,000 units.A total of 10,000 units were extracted in 2013 and 7,000 units were sold in 2014.Gross income from the property was $2,800,000 and taxable income without the allowance for depletion was $1,000,000.Determine the depletion deduction for 2014.

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Definitions:

Menarche

The occurrence of the first menstrual cycle in adolescent females, a significant milestone in female puberty.

Eclampsia

A severe complication of pregnancy that produces seizures and coma in the mother, related to pre-eclampsia, characterized by high blood pressure and often significant amounts of protein in the urine.

Amenorrhea

The absence of menstruation - one or more missed menstrual periods.

Dysmenorrhea

Painful menstruation, which may involve cramps in the pelvic area.