Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 8, Problem 29CE
To determine
Determine P’s cost depletion for 2019.
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Chapter 8 Solutions
Individual Income Taxes
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - LO.2 Robert purchased and placed in service...Ch. 8 - LO.2 Jim owns a very large ranch. A large part of...Ch. 8 - Prob. 10DQ
Ch. 8 - Explain how the 179 immediate expensing deduction...Ch. 8 - Prob. 12DQCh. 8 - Discuss the definition of business income as it is...Ch. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - LO.2 Euclid acquires a 7-year class asset on May...Ch. 8 - LO.2 Hamlet acquires a 7-year class asset on...Ch. 8 - LO.2 Lopez acquired a building on June 1, 2014,...Ch. 8 - LO.2 Andre acquired a computer on March 3, 2019,...Ch. 8 - LO.2, 3 Diana acquires, for 65,000, and places in...Ch. 8 - LO.3 McKenzie purchased qualifying equipment for...Ch. 8 - LO.4 On April 5, 2019, Kinsey places in service a...Ch. 8 - LO.7 On October 1, 2019, Priscilla purchased a...Ch. 8 - Prob. 29CECh. 8 - Prob. 30CECh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - LO.2 Orange Corporation acquired new office...Ch. 8 - LO.2 Weston acquires a new office machine (7-year...Ch. 8 - LO.2 Juan acquires a new 5-year class asset on...Ch. 8 - LO.2 Debra acquired the following new assets...Ch. 8 - LO.2 On August 2, 2019, Wendy purchased a new...Ch. 8 - Prob. 38PCh. 8 - LO.2 On May 5, 2019, Christy purchased and placed...Ch. 8 - Prob. 40PCh. 8 - Lori, who is single, purchased 5-year class...Ch. 8 - LO.2, 3 Olga is the proprietor of a small...Ch. 8 - LO.2, 3, 9 On June 5, 2018, Javier Sanchez...Ch. 8 - LO.3, 4 Jabari Johnson is considering acquiring an...Ch. 8 - LO.2, 4 On October 15, 2019, Jon purchased and...Ch. 8 - LO.4 On June 5, 2018, Leo purchased and placed in...Ch. 8 - LO.2, 3, 4 On March 15, 2019, Helen purchased and...Ch. 8 - LO.2, 4 On May 28, 2019, Mary purchased and placed...Ch. 8 - Prob. 49PCh. 8 - LO.2, 4, 9 Dennis Harding is considering acquiring...Ch. 8 - LO.2, 5 In 2019, Muhammad purchased a new computer...Ch. 8 - LO.2, 5, 9 Jamie purchased 100,000 of new office...Ch. 8 - Prob. 53PCh. 8 - Prob. 54PCh. 8 - Prob. 55PCh. 8 - Prob. 56PCh. 8 - Prob. 57CPCh. 8 - John Smith, age 31, is single and has no...Ch. 8 - Your client, Daves Sport Shop, sells sports...Ch. 8 - Prob. 2RPCh. 8 - Prob. 3RPCh. 8 - Michael Sima, a sole proprietor craftsman,...Ch. 8 - Cox Construction, a company in its 10th year of...Ch. 8 - Stem Corp. bought a machine in February of year 7...Ch. 8 - Prob. 4CPACh. 8 - Data, Inc., purchased and placed in service a...Ch. 8 - Data, Inc., purchased and placed in service 5,000...Ch. 8 - Which statement below is correct? a. Real property...Ch. 8 - Charlie purchased an apartment building on...
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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?arrow_forwardEMSN Corp. purchased PPE on January 1, 2020 for $7,221,000. The production estimates the asset will be used for 5 years, after which it can be sold for $578,000 based on these estimates, what is the depreciation expense in 2021 on this asset if the ompann-of-the-year's-digits method for calculating depreciation? 2,214,333 1,771,467 $1,328,600 There is not enough information to answer this question. On July 1, 2020, Bodhi purchased equipment for $4,295,000. The salvage value of the equipment is estimated to be $515,000 and the management team believes that the equipment can be used for 5 years. Assuming the company uses the straight line method and follows FASB's preferences for recording partial year depreciation, what should the company record as depreciation expense in 2020? 378,000 $ 756,000 $3,539,000 $3,917,000 Which of the following would be considered a capital expenditure? (A 22) O Making a payment on accounts payable O Paying accumulated income taxes O Paying shipping…arrow_forwardDogarrow_forward
- how much is the depreciation expense for 2024 using SYD depreciation method?arrow_forward15. In 2020, Tableta Company paid P4,000,000 to purchase a land containing a total estimated 160,000 tons of extractable mineral deposits. The estimated value of the property after the mineral has been removed is P800,000. On March 30, 2021, Tableta Company purchased mining equipment costing P1,500,000. The useful life of the equipment is 10 years. Extraction activities began in 2021 and by the end of the year, 20,000 tons had been recovered and sold. The depreciation expense pertaining to the mining equipment in 2021 amounted to?arrow_forwardDuring 2020, ABC Company acquired a mineral mine for P1,500,000 of which P200,000 was ascribed to land value after the mineral has been removed. Geological surveys have indicated that 10 million units of the mineral could be extracted. During 2020, 1,500,000 units were extracted and 1,200,000 units were sold. What is the amount of depletion expensed for 2020? A. P180,000 B. P130,000 C. P156,000 D. P195,000arrow_forward
- 1. The Fairy Company purchased a site for limestone quarry for P 100,000 on January 2, 2020. It estimates that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligation has a fair value of P 20,000 after which the land can be sold for P 10,000. In 2020, 80,000 tons were quarried and 60,000 tons sold. Cost of production (excluding depletion) are P4 per ton. Compute the total cost of goods sold for 2020.arrow_forwardABC Company has an equipment acquired on January 1, 2018 at a cost of P2,200,000 with estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. Two years after, the depreciated replacement cost has declined to 1,470,000. Round off percentage to whole number and gross-up value to the nearest peso if you are required to gross up. On December 31, 2024, the equipment’s carrying value isarrow_forwardDepletion On January 2, 2019, Whistler Company purchased land for $470,000, from which it is estimated that 410,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $77,000, after which it could be sold for $37,000. During 2019, Whistler mined 86,000 tons and sold 66,000 tons. During 2020, Whistler mined 108,000 tons and sold 107,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 57,000 tons. In 2021, Whistler mined 138,000 tons and sold 149,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income Depletion included in inventory 2020 Depletion deducted from income Depletion included in inventory 2021 Depletion…arrow_forward
- 4. ABC Company has equipment acquired on January 1, 2018, at a cost of P2,200,000 with an estimated residual value of P200,000 and 20 years estimated useful life. On December 31, 2021, the replacement cost of the equipment is P2,400,000. Two years after, the depreciated replacement cost has declined to 1,470,000. Round off percentage to a whole number and gross-up value to the nearest peso if you are required to gross up. Immediately after revaluation, the revaluation surplus has a balance of?arrow_forwardDepletion On January 2, 2019, Whistler Company purchased land for $480,000, from which it is estimated that 370,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $89,000, after which it could be sold for $29,000. During 2019, Whistler mined 85,000 tons and sold 56,000 tons. During 2020, Whistler mined 110,000 tons and sold 111,000 tons. At the beginning of 2021, Whistler spent an additional $90,000, which increased the reserves by 65,000 tons. In 2021, Whistler mined 154,000 tons and sold 160,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar. Question Content Area 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income $fill in the blank d2d600ff0fa6007_1 Depletion included in inventory $fill in the…arrow_forwardDepletion On January 2, 2019, Whistler Company purchased land for $410,000, from which it is estimated that 370,000 tons of ore could be extracted. It estimates that the present value of the cost necessary to restore the land is $52,000, after which it could be sold for $26,000. During 2019, Whistler mined 75,000 tons and sold 56,000 tons. During 2020, Whistler mined 98,000 tons and sold 99,000 tons. At the beginning of 2021, Whistler spent an additional $110,000, which increased the reserves by 70,000 tons. In 2021, Whistler mined 148,000 tons and sold 142,000 tons. Whistler uses a FIFO cost flow assumption. Required: If required, round the depletion rate to the nearest cent and round the final answers to the nearest dollar. 1. Calculate the depletion included in the income statement and ending inventory for 2019, 2020, and 2021. 2019 Depletion deducted from income 66,080 Depletion included in inventory 2020 Depletion deducted from income 116.820 Depletion included in inventory 2021…arrow_forward
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