Lucky Strike Mine (LLC)purchased a silver deposit for $1,500,000.It estimated it would extract 500,000 ounces of silver from the deposit.Lucky Strike mined the silver and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively.During Years 1 through 3, Lucky Strike reported net income (loss)from the silver deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively.In Years 1 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows: $$\begin{array}{l}
\text { Ourices extracted per year }\
\begin{array} { l c c }
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
50,000 & 150,000 & 100,000
\end{array}
\end{array}$$ What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent?

Question

Lucky Strike Mine (LLC)purchased a silver deposit for $1,500,000.It estimated it would extract 500,000 ounces of silver from the deposit.Lucky Strike mined the silver and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively.During Years 1 through 3, Lucky Strike reported net income (loss)from the silver deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively.In Years 1 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows: $$\begin{array}{l}
\text { Ourices extracted per year }\
\begin{array} { l c c } 
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
50,000 & 150,000 & 100,000
\end{array}
\end{array}$$ What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent?

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The Answer of Lucky Strike Mine (LLC)purchased a silver deposit for $1,500,000.It estimated it would extract 500,000 ounces of silver from the deposit.Lucky Strike mined the silver and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively.During Years 1 through 3, Lucky Strike reported net income (loss)from the silver deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively.In Years 1 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows: $$\begin{array}{l}
\text { Ourices extracted per year }\
\begin{array} { l c c } 
\text { Year 1 } & \text { Year 2 } & \text { Year 3 } \
50,000 & 150,000 & 100,000
\end{array}
\end{array}$$ What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent?

Lucky Strike Mine (LLC)purchased a Silver Deposit for $1,500,000 What Is Lucky Strike's Depletion Deduction for Year 2 If