- 10 - The following schedule shows the aggregate income offsets or deductions claimed on each of Cordero’s separate returns that Cordero treated as mine development expenditures (column 2), and the portion thereof that was capitalized (column 3), pursuant to section 291(b)(1): Total develop- Total amount Overburden Amount Year ment costs capitalized removal costs capitalized 1983 $16,871,299 $2,530,695 $13,743,557 $2,061,534 1983 3,456,699 518,505 3,456,699 518,505 1984 21,521,593 1 4,304,319 19,071,400 13,814,280 1985 218,033,139 3 3,606,278 17,756,308 3,551,262 1986 10,714,828 2,142,966 10,452,801 2,090,560 1 Cordero capitalized 20 rather than 15 percent, the statutory rate, and as a result overstated the total amount capitalized by $1,076,080. 2 The parties agree that this amount is overstated by $16,760. 3 The parties agree that this amount is overstated by $3,002. Column 4 of the above schedule, entitled “Overburden removal costs”, shows the amounts of overburden removal costs that were incurred at the Gillette mine and were treated by Cordero as mine development expenditures. These amounts form the bulk of Cordero’s total development costs set out in column 2. Column 5 of the above schedule, entitled “Amount capitalized”, shows the portion of each amount in column 4 that was capitalized, pursuant to section 291(b)(1). These amounts form the bulk of the total amount capitalized set out in column 3. Generally, Cordero amortized the total amount capitalized (column 3) for each of the years in issuePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011