Aggie Oil Company has the following information:

The lease is subleased to Acme Oil Company for \($300,000,\) and Aggie retains an 1/16 ORI. At the date of the sublease, the FMV of the equipment is 180,000.
REQUIRED: Determine the tax basis of Aggie’s and Acme’s assets and the amount of any tax revenue.

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Leasehold costs Accumulated depletion. L&WE..... Accumulated depreciation. $ 6,000 1,000 200,000 75,000