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Business, 13.07.2020 17:01 jake9919

Oil and gas properties are entitled to a 15% statutory depletion allowance. Assume that Darlene purchased an oil reserve several years ago. Gross income from the reserve is $90,000 for the year. Taxable income from the reserve, before the depletion deduction, is $50,000. Cost depletion for the year is $6,000. What is Darlene's depletion deduction for the year for tax purposes

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