Percentage Depletion . Tony has owned an oil and gas property for a number of years. The following..


Percentage Depletion . Tony has owned an oil and gas property for a sum of years. The aftercited notification is supposing encircling the property 's operations in the general year:

a. What is the percentage depletion aggregate if the IDCs are expensed?

b. What is the percentage depletion aggregate if the IDCs are capitalized?

c. What is the depletion conclusion aggregate assuming that the IDCs are expensed?

d. Based on the notification over, which regularity should be used for the IDCs? Explain.