Rick Purchased a Uranium Interest for $10,000,000 on January 3,2011,when

question 54

Essay

Rick purchased a uranium interest for $10,000,000 on January 3,2011,when recoverable reserves were estimated at 200,000 units.A total of 10,000 units were extracted in 2011 and 7,000 units were sold in 2011.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 2011.

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Definitions:

Surgical Procedure

A medical operation performed by surgeons to diagnose or treat an illness or injury.

Aseptic Technique

Practices and procedures used to prevent contamination from pathogens, typically in medical and clinical settings.

Contamination

The presence of unwanted substances or pollutants in a material, environment, or product, leading to potential harm or pollution.

Anesthetic

A substance that induces insensitivity to pain, temporary loss of sensation or awareness; used during surgical and dental procedures.