What is erin tax preference for excess depletion

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Reference no: EM13142392

Erin owns a mineral property that had a basis of $10,000 at the beginning of the year. The property qualifies for a 15% depletion rate. Gross income from the property was $120,000 and net income before the percentage depletion deduction was $50,000. What is Erin's tax preference for excess depletion?

A) $8,000

B) $10,000.

C) $18,000.

D) $0.

E) None of the above.

Reference no: EM13142392

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