Garage Oil Company, an independent producer, has the following account balances at 1/1/20XA:

Determine the amount of the tax loss on the following dates:

a. On March 1, 20XA, the unproved property is abandoned.

b. On April 2, 20XA, Lease B is abandoned with salvageable equipment in the amount of $12,000.

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Unproved property-Lease A. Equipment Lease B Acquisition costs Lease B.. Accumulated depletion Accumulated depreciation. $ 10,000 150,000 8,000 5,000 110,000