Last chance mine (lc) purchased a coal deposit for $720,000. it estimated it would extract 12,000 tons of coal from the deposit. lc mined the coal and sold it reporting gross receipts of $1 million for year 1. during year 1, lc reported net income from the coal deposit activity in the amount of $80,000. in year 1, lc actually extracted 2,000 tons of coal. what is last chance's percentage depletion for year 1 (the applicable percentage for coal is 10 percent)?

The answer to this question is $100,000

Explanation:

From the question given. let recall the following,

Lat chance mine purchased a coal deposit for = $720,000

The estimated would extract 12,000 tons of coal from the deposit

The last chance mine the coal and sold it with reporting gross receipts of = $1,000,000

The reported net income from the coal deposit activity is =$80,000

Now let us find the percentage depletion

Percentage depletion is defined as the deduction in tax for the devaluation   permitted  in business in removing  minerals, fossil fuels from the earth

The percentage of depletion is analysed or determined by multiplying the total  sales by the percent allowed by the IRS

Which is,

 $1,000,000 x 10% = $100,000

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi