2669Civil EngineeringMedium
Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________ which ever is smaller?
A50% of the fixed percentage of gross income or 50% of the net taxable income
B50% of the fixed percentage of gross income or the net taxable income
CFixed percentage of gross income or 50% of the net taxable income
DFixed percentage of gross income or the net taxable income
Correct answer
C. Fixed percentage of gross income or 50% of the net taxable income
Explanation
The correct answer is Fixed percentage of gross income or 50% of the net taxable income.