71. Jorge purchased a copyright for use

71. Jorge purchased a copyright for use in his business in the current year. The purchase occurred on July

15th and the purchase price was $75,000. If the patent has a remaining life of 75 months, what is the total

amortization expense Jorge may deduct during the current year?

A. $0

B. $5,500

C. $6,000

D. $12,000

E. None of the above

72. Geithner LLC patented a process it developed in the current year. The patent is expected to create

benefits for Geithner over a 10 year period. The patent was issued on April 15th and the legal costs

associated with the patent were $43,000. In addition, Geithner had unamortized research expenditures of

$15,000 related to the process. What is the total amortization expense Geithner may deduct during the

current year?

A. $2,417

B. $2,559

C. $4,108

D. $4,350

E. None of the above

73. Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe

paid $300,000 for extraction rights. A geologist estimates that Santa Fe will recover 5,000 pounds of

turquoise. During the current year, Santa Fe extracted 1,500 pounds of turquoise, which it sold for

$200,000. What is Santa Fe’s cost depletion expense for the current year?

A. $60,000

B. $90,000

C. $110,000

D. $300,000

E. None of the above

74. Santa Fe purchased the rights to extract turquoise on a tract of land over a five-year period. Santa Fe

paid $300,000 for extraction rights. A geologist estimated that Santa Fe will recover 5,000 pounds of

turquoise. During the past several years, 4,000 pounds were extracted. During the current year, Santa

Fe extracted 1,500 pounds of turquoise, which it sold for $250,000. What is Santa Fe’s cost depletion

expense for the current year?

A. $60,000

B. $90,000

C. $190,000

D. $160,000

E. None of the above

75. Lucky Strike Mine (LLC) purchased a silver deposit for $1,500,000. It estimated it would extract 500,000

ounces of silver from the deposit. Lucky Strike mined the silver and sold it reporting gross receipts of

$1.8 million, $2.5 million, and $2 million for years 1 through 3, respectively. During years 1 – 3, Lucky

Strike reported net income (loss) from the silver deposit activity in the amount of ($100,000), $400,000,

and $100,000, respectively. In years 1 – 3, Lucky Strike actually extracted 300,000 ounces of silver as

follows:

What is Lucky Strike’s depletion expense for year 2 if the applicable percentage depletion for silver is 15

percent?

A. $200,000

B. $375,000

C. $400,000

D. $450,000

E. None of the above

76. Janey purchased machinery on April 8th of the current year. The relevant costs for the year are as follows:

machinery for $10,000, $800 shipping, $50 for delivery insurance, $500 for installation, $750 for sales

tax, $150 for the annual tune up, and $200 of property taxes (an annual tax on business property). What is

Janey’s tax basis for the machinery?

77. Jaussi purchased a computer several years ago for $2,200 and used it for personal purposes. On

November 10th of the current year, when the fair market value of the computer was $800, Jaussi

converted it to business use. What is Jaussi’s tax basis for the computer?

78. Flax, LLC purchased only one asset during 2011. It placed in service a computer (5-year property) on

January 16 with a basis of $14,000. Calculate the maximum depreciation expense (ignoring section 179

and bonus expensing).

79. Roth, LLC purchased only one asset during the current year. It placed in service computer equipment (5-

year property) on November 1st with a basis of $42,500. Calculate the maximum depreciation expense

(ignoring section 179 and bonus expensing).

80. Eddie purchased only one asset during the current year. It placed in service furniture (7-year property)

on May 1st with a basis of $26,500. Calculate the maximum depreciation expense, rounded to the nearest

whole number (ignoring section 179 and bonus expensing)

ORDER A SIMILAR ESSAY WRITTEN FROM SCRATCH at : https://www.topgradehub.com/

PLACE YOUR ORDER