Wes acquired a mineral interest during the year for $10,000,000. A geological survey estimated that...
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Wes acquired a mineral interest during the year for $10,000,000. A geological survey estimated that 250,000 tons of the mineral remained in the deposit. During the year, 80,000 tons were mined, and 45,000 tons were sold for $12,000,000. Other related expenses amounted to $5,000,000. Assume the mineral depletion rate is 22%. Calculate Wes's lowest taxable income, after any depletion deductions.
Please show calculation and steps. Thanks.
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