What is erin tax preference for excess depletion

Reference no: EM13142392

Erin owns a mineral property that had a basis of $10,000 at the beginning of the year. The property qualifies for a 15% depletion rate. Gross income from the property was $120,000 and net income before the percentage depletion deduction was $50,000. What is Erin's tax preference for excess depletion?

A) $8,000

B) $10,000.

C) $18,000.

D) $0.

E) None of the above.

Reference no: EM13142392

Questions Cloud

Compute the claim against the insurance company : our past records show that sales are made at approximately 25% over cost. Garnett's insurance covers only goods owned. Instructions Compute the claim against the insurance company.

What to conclude about the validity of the claim : If a random sample of 36 graduates had an average weekly income of $675, what would you conclude about the validity of the claim?

Each component of other comprehensive income is displayed : The company's effective tax rate on all items affecting comprehensive income is 30%. Each component of other comprehensive income is displayed net of tax.

What were its causes : "Explain what is meant by the term "market revolution." What were its causes? Describe how the "market revolution" shaped Americans' perceptions and actions in the Jacksonian era.

What is erin tax preference for excess depletion : Erin owns a mineral property that had a basis of $10,000 at the beginning of the year. The property qualifies for a 15% depletion rate. Gross income from the property was $120,000 and net income before the percentage depletion deduction was $50,00..

"emerging technologies" : "What are some of the "emerging technologies" of 2006 and where they successful or unsuccessful?

What are tax consequences to sheldon and hawk corporation : In the current year, Hawk Corporation redeems 75 shares of Sheldon’s stock for $75,000. Sheldon had acquired all of his shares 10 years ago at a cost of $100 per share. What are tax consequences to Sheldon and Hawk Corporation as a result of the s..

What criteria determine whether the investor should apply : a company acquires a rather large investment in another corporation. What criteria determine whether the investor should apply the equity method of accounting to this investment? Who has a current acquistion example to share?

Ethical behaviour in business : "Write one page about the ethical behaviour in business and give examples."

User Account

All Pages