Exhibit 600-1
Section 630, Depletion Problems
| Examiners Computations | |||||
| Tract A | Tract B | Tract C | Combined | ||
| Adjusted basis of timber | $90,000 | $110,000 | $280,000 | $480,000 | |
| Total estimated quantity | 9,000M | 11,000M | 10,000M | 30,000M | |
| Depletion unit | $10 per M | $10 per M | $28 per M | $16 per M | |
| Quantity cut during 1976 | 9,500M | 11,500M | None | 21,000M | |
| Depletion claimed (21,000M x $16) | |||||
| Allowable depletion: | $336,000 | ||||
| Tract A - 9,000M x $10 = $90,000 500M overrun - None |
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| Tract B - 11,000M x $10 = $110,000 500M overrun - None |
$200,000 |
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| $136,000 | |||||