Q5 A coal mine has a gross income of $300,000 for the year. Mining expenses equal $300,000. Compute the allowable percentage depletion deduction.

This year, Industrial Consolidated reported depreciation expense of $85,000 on its income statement while reporting Net Fixed Assets of $1,200,000 on its balance sheet. Last year, it reported depreciation expense of $110,000 and net fixed assets of $1,350,000. What was Net Capital Spending this year?   Question 6 options:   ($40,000)   $70,000   $45,000   $260,000   ($65,000)

1.During the month of August, a mining company has a gross income of P4,200,000 from the production of nickel. All expenses, excluding depletion expenses for this month, amount to P2,800,000. If the fixed depletion rate for nickel is 22%, what is the depletion allowance for this month? 2.To develop on oil well containing 5,000,000 barrels of oil required an initial investment of P40,000,000. In a certain year, 500,000 barrels of oil were produced from this well. Determine the depletion charge during the year. 3. a certain machine costs p40,000 and has a life of 4 years and salvage value of p5000. the production output of this machine in units per year for the first year; 1,800 units,2nd year 2,200 units; 3rd year; 3,000 units, 4th year 4,000 units. the units produced are of uniform quality. what is the annual depreciation charge?

An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $75,000, and it has an estimated MV of $15,000 at the end of an estimated useful life of 15 years. Compute the BV at the end of the fifth year using GDS. Select one: O a $12,478.25 O b. $11,421.8 O C. $21,516.25 O d. $16,732.5

How is the total cost of the mine $3,173,705 and not $1,903,941?

2. The XYZ Company builds finished plastic products and has decided purchase manufacturing equipment (special tools) at a cost of $900,000. This equipment qualifies for 60% bonus depreciation, the balance will be depreciated using the MACRS deprecation method. The gross income for the calendar year was $1,800,000. Supplies and operating expenses were $500,000. a. What is firms taxable income for the first year? b. How much in taxes will the firm pay in the first year?

Land: $9,397 Buildings: $20,722 Furnitures, Fixtures, and Equipment: $16,631 Other: $6,931 Accumulated Depreciation: $26,506 Net Property, Plant, and Equipment: 27,175 Sales: $134,752 a. Assuming a useful life of 10 years and no residual value, what is the expected amount of depreciation expense? answer to the nearest million. b. What is the fixed asset turnover ratio? answer to two decimal places. c. What is the average age of fixed assets? answer to two decimal places. d. What is depreciation expense as a percentage of net sales? answer to two decimal places.

was depreciated by the straight line method at 2% per year, assumine a 50-vear life and ni Tes walue. The building was re-valued to $2,250,000 on 1 January 20x6. The useful life was not ten The excess depreciation charge will be transferred from the revaluation surplus to retained earnings each year. The company's financial year ends on 31 December. What is the balance on the revaluation surplus at 31 December 20X6? %24 42 8.19 Banter Co an on 1 January 20X1. The cost was and ths

A 75,000-ton limestone quarry cost $2,000,000 to develop. Annual gross income for the quarry in years 1 through 5 is estimated at $1,000,000. The annual production level during years 1-5 is estimated to be 10,000 tons. The percentage depletion allowance for limestone is 5%. Assume that depletion charges do not exceed 50% of taxable income. Find the estimated depletion for year 5 based on the percentage depletion method and the cost depletion method (state the depletion factor pt as part of your solution in $ per ton).

A coal mine cost $1,004,000 and is estimated to hold 58,000 tons of coal. There is no residual value. During the first year of​ operations, 11,000 tons are extracted and sold. Calculate depletion per unit.​ (Round your answer to the nearest​ cent.)