Charles Purchases an Interest in a Uranium Mine for $2,500,000

Multiple Choice

Charles purchases an interest in a uranium mine for $2,500,000 on June 7,2016.Recoverable tonnage is estimated at 500,000.During 2016,25,000 tons are mined and sold for $800,000.Charles incurs $500,000 of expenses during 2016.The percentage depletion rate for uranium is 22%.What is the depletion deduction for 2016?

A) $125,000
B) $150,000
C) $176,000
D) $200,000
E) $250,000