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 - 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 - 3,Lucky Strike actually extracted 300,000 ounces of silver as follows: What is Lucky Strike's depletion expense 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 - 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 - 3,Lucky Strike actually extracted 300,000 ounces of silver as follows:  What is Lucky Strike's depletion expense 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 - 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 - 3,Lucky Strike actually extracted 300,000 ounces of silver as follows:  What is Lucky Strike's depletion expense 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