1) Wes acquired a mineral interest during the year for $10,000,000. A geological survey estimated that 250,000 tons of the mineral remained in the deposit. During the year, 80,000 tons were mined, and 45,000 tons were sold for $12,000,000. Other expenses amounted to $5,000,000. Assume the mineral depletion rate is 22%. a. What is the taxable income before the deduction for depletion? $ b. Under cost depletion, what is the amount of the deduction? $ c. Under percentage depletion, what is the amount of the deduction? $ d. Wes's lowest taxable income after the depletion deduction is $ . 2) Orange Corporation acquired new office furniture on August 15, 2012, for $130,000. Orange did not elect immediate expensing under 179. Orange takes additional first-year depreciation. a. Orange's cost recovery deduction for 2012 is $ 3) Weston acquires a new office machine (seven-year class asset) on November 2, 2012, for $75,000. This is the only asset acquired by Weston during the year. He does not elect immediate expensing under 179. He does take additional first-year depreciation. On September 15, 2013, Weston sells the machine. a. What MACRS convention applies to the machine? b. Weston's cost recovery for 2012 is $ and for 2013 is $