1.Sequoia purchased the rights to cut timber on several tracts of land over a 15-year period. It paid $509,000 for cutting rights. A timber engineer estimates that 509,000 board feet of timber will be cut. During the current year, Sequoia cut 54,000 board feet of timber, which it sold for $909,000. What is Sequoia's cost depletion deduction for the current year?

2.

Paulman incurred $60,000 of research and experimental expenses and began amortizing them over 60 months during June of Year 1. During May of Year 3, Paulman received a patent based upon the research being amortized. $41,000 of legal expenses for the patent were incurred. The patent is expected to have a remaining useful life of 17 years. 1) What is the basis of the patent? (Round amortization for each year to the nearest whole number.)

2) What is the amortization deduction with respect to the patent during the year it was issued? (R