What is dkdmsr depletion expense for years one

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Problem 1: DKDMSR Mine purchased a platinum deposit for $2,200,000. It estimated it would extract 25,000 ounces of platinum from the deposit. DKDMSR mined the platinum and sold it reporting gross receipts of $900,000 and $9 million for years 1 and 2, respectively. During years 1 and 2, DKDMSR reported net income (loss) from the platinum deposit activity in the amount of ($50,000) and $4,800,000, respectively. In years 1 and 2, DKDMSR actually extracted and sold 3,000 and 11,000 ounces of platinum. What is DKDMSR's depletion expense for years 1 and 2 if the applicable percentage depletion for platinum is 22 percent?

Reference no: EM132784818

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