Which is not true related to the cost recovery depreciation deduction for natural resources like oil?...
Which is not true related to the cost recovery depreciation deduction for natural resources like oil?
A. Cost depletion based on the number of units can be claimed.
B. Percentage depletion at 15 % of gross revenue can be claimed.
C. The deduction is called depletion.
D. The method is MACRS.
Homework Answers
The option is D the method is MACRS.
Reason : The cost recovery depreciation deduction for natural resources like oil have two different methods of account for this is called as cost of depletion and percentage of depletion.
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