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Question - In January, 2020, Camel Corporation purchased a mine for $2,550,000 with removable ore estimated by geological surveys at 1 million tonnes. The property has an estimated (residual) value of $150,000 after the ore has been extracted. The company incurred $750,000 in development costs preparing the mine for production. During 2020, 250,000 tonnes were removed and 200,000 tonnes were sold. What is the amount of depletion that Camel should expense for 2020?
a) $480,000
b) $600,000
c) $787,500
d) $840,000
Clint collected $50,000 as the beneficiary of a group term life insurance policy when his wife died. The premiums on the policy were paid by his deceased wife's employer.
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