Which of the following methods provides a tax deduction that exceeds the cost of an asset less its expected residual value?
A)MACRS depreciation
B)group depreciation
C)percentage depletion
D)cost depletion

Question

Quizplus · Accepted Answer

Percentage depletion allows a taxpayer to deduct a fixed percentage of the revenue generated from the extraction of natural resources, which can exceed the cost of the asset less its expected residual value. This method is unique in potentially allowing deductions that are greater than the asset's adjusted basis.

Which of the Following Methods Provides a Tax Deduction That