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.)

---

Definitions:

Messages

Units of communication intended to convey information, feelings, or instructions from one individual or group to another.

Workplace

The physical or virtual location where people perform their jobs or conduct professional activities.

Cultural Competency

The capability to comprehend, value, and engage with individuals from diverse cultures or belief systems distinct from one’s personal background.

Communication Skills

The ability to convey information to another effectively and efficiently, through mediums like writing, speaking, listening, and non-verbal gestures.