On January 15,2011,Vern purchased the rights to a mineral interest for $3,500,000.At that time it was estimated that the recoverable units would be 500,000.During the year,40,000 units were mined and 25,000 units were sold for $800,000.Vern incurred expenses during 2011 of $500,000.The percentage depletion rate is 22%.Determine Vern's depletion deduction for 2011.

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The Answer of On January 15,2011,Vern purchased the rights to a mineral interest for $3,500,000.At that time it was estimated that the recoverable units would be 500,000.During the year,40,000 units were mined and 25,000 units were sold for $800,000.Vern incurred expenses during 2011 of $500,000.The percentage depletion rate is 22%.Determine Vern's depletion deduction for 2011.

On January 15,2011,Vern Purchased the Rights to a Mineral Interest