PC Mine Purchased a Platinum Deposit for $3,500,000

question 64

Essay

PC Mine purchased a platinum deposit for $3,500,000. It estimated it would extract 17,000 ounces of platinum from the deposit. PC mined the platinum and sold it, reporting gross receipts of $500,000 and $8 million for Years 1 and 2, respectively. During Years 1 and 2, PC reported net income (loss)from the platinum deposit activity in the amount of ($100,000)and $3,800,000, respectively. In Years 1 and 2, PC actually extracted 2,000 and 8,000 ounces of platinum. What is PC's depletion deduction for Years 1 and 2 if the applicable percentage depletion for platinum is 22 percent? (Round final answer to the nearest whole number.)

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19th Century

Refers to the period from January 1, 1801, to December 31, 1900, marking the nineteenth century in the Gregorian calendar.

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