TRNSMF Mine purchased a platinum deposit for $3,500,000. It estimated it would extract 17,000 ounces...
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TRNSMF Mine purchased a platinum deposit for $3,500,000. It estimated it would extract 17,000 ounces of platinum from the deposit. TRNSMF 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, TRNSMF 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, TRNSMF actually extracted 2,000 and 8,000 ounces of platinum. What is TRNSMF's depletion expense for years 1 and 2 if the applicable percentage depletion for platinum is 22 percent?
Cost Depletion expense year 1
Cost Depletion expense year 2.
Percentage Depletion expense year 1
Percentage Depletion expense year 2.
Depletion expense claimed year 1
Depletion expense claimed year 2.
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