Widget Industries erected a facility costing $1.56 million on land bought for $1 million. The firm used straight-line depreciation over a 39-year period; it installed $2.5 million worth of plant and office equipment (all classified as MACRS 7-year property). Gross income from the first year of operations (excluding capital expenditures) was $8.2 million, and $5.8 million was spent on labor and materials. How much did Widget pay in federal income taxes for the first year of operation?                                                                                       (a) $680,935 (b) $1,002,750 (c) $1,321,815 (d) $2,788,000

A consumer electronics company was formed to sell a portable handset system. The company purchased a warehouse and converted it into a manufacturing plant for $2,000,000 (including the purchase price of the warehouse). It completed the installation of assembly equipment worth $1,500,000 on December 3l. The plant began operation on January 1. The company had a gross income of $2,500,000 for the calendar year. Manufacturing costs and all operating expenses, excluding the capital expenditures, were $1,280,000. The depreciation expenses for capital expenditures amounted to $128,000.(a) Compute the taxable income of this company.(b) How much will the company pay in federal income taxes for the year?

Copy equipment was acquired at the beginning of the year at a cost of $51,850 that has an estimated residual value of $4,700 and an estimated useful life of 5 years. It is estimated that the machine will output an estimated 943,000 copies. This year, 204,000 copies were made. a. Determine the depreciable cost.$fill in the blank 1 b. Determine the depreciation rate. Round your answer to two decimal places.$fill in the blank 2 per copy c. Determine the units-of-output depreciation for the year.$fill in the blank 3

Perez Company acquires an ore mine at a cost of $2,380,000. It incurs additional costs of $666,400 to access the mine, which is estimated to hold 1,700,000 tons of ore. 215,000 tons of ore are mined and sold the first year. The estimated value of the land after the ore is removed is $340,000. Calculate the depletion expense from the information given. record the cost of the o mine and year end adjusting entry

Miller Corp. purchased a new machine for its factory. The following lists shows the various expenditures for the machine during its first year: • Base purchase price, $75.000 • Sales tax incurred at the time of purchase, $4,000 • Installation charges for the machine, $700 • Insurance costs incurred while the machine was being shipped, $200 • Insurance costs for the first year of the machine's service life, $500 • Ordinary repairs and maintenance costs during the first year of the machine's service life, $1,200 Question: What should be the capitalized cost of the machine? Answer: $ (do not use commas or a decimal in the answer)

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Morris Associates bought a machine for $82,000 cash. The estimated useful life was five years and the estimated residual value was $7,000. Assume that the estimated useful life in productive units is 171,000. Units actually produced were 45,600 in year 1 and 51,300 in year 2. Required: 1. Determine the appropriate amounts to complete the following schedule.

Vandeventer Corporation purchased land containing 25.4 million barrels of naphthenic crude oil for $14,732,000. It cost $4,537,000 to prepare the property for production and the residual value is $1,179,000. Compute the annual depletion cost if 4,623,000 barrels were produced during the year. Round depletion cost per unit to the nearest cent.   $

Company I purchased a piece of land for its natural resources at a cost of $1,500,000. The land is expected to have a salvage value of $250,000. A lumber expert visited the property and estimated the property to have 500,000 pounds of timber. The first year, the company logged 350,000 pounds of timber, and the second year, another 250,000 pounds of timber were logged. Calculate the depletion expense rate AND calculate the depletion expense the company should recognize in Year 1 and Year 2:

Leroy Mining Company purchased land containing an estimated 10,000,000 tons of ore for a cost of $750,000. The land without the ore is estimated to be worth $150,000 (the residual value). The company expects that all the usable ore can be mined in eight years. During its first year of operation, the company mined 1,000,000 tons of ore and at the end of the year had an inventory of 200,000 tons Determine the following amounts for the first year: (a) depletion charge per ton; (b) depletion expense for year;