Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ________________ which ever is smaller ?

A. 50% of the fixed percentage of gross income or 50% of the net taxable income

B. 50% of the fixed percentage of gross income or the net taxable income

C. Fixed percentage of gross income or 50% of the net taxable income

D. Fixed percentage of gross income or the net taxable income

Found an error? Read our corrections policy and submit a sourced correction below. You can also share a useful explanation in your own words.

Discuss the answer or suggest a sourced correction
Thank you for contributing.
Your comment was submitted and will appear after editorial review.

Your email is used only for moderation and is never displayed. Spam, copied material and fabricated endorsements are rejected.