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Civil Engineering · Q108

Engineering Economics

Engineering and GATE · Civil Engineering · question 108

Q108

Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

A.
Fixed percentage of gross income or the net taxable income
B.
Fixed percentage of gross income or 50% of the net taxable income
Answer
C.
50% of the fixed percentage of gross income or 50% of the net taxable income
D.
50% of the fixed percentage of gross income or the net taxable income

Answer: Option B

Solution

Answer: Option B
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