Basis in property: $50,000
Total recoverable units: 500,000
Rate of depletion per ton: $0.10 ($50,000 ÷ 500,000)
Cost depletion for year: $5,000
($0.10 * 50,000)
26 C.F.R. §1.636-1
Basis in property: $50,000
Total recoverable units: 500,000
Rate of depletion per ton: $0.10 ($50,000 ÷ 500,000)
Cost depletion for year: $5,000
($0.10 * 50,000)
26 C.F.R. §1.636-1