B D E F G H K M N 5 1 AC 371 2 Chapter 10 Homework Assignment 3. Note: You must show all work for each question in this Excel spreadsheet to receive credit for this assignment. 4 Please upload the completed Excel spreadsheet (showing all calculations) to Blackboard using the link provided with the homework assignment. 6 Ivan Ford acquired the rights to a natural gas reserve located on a property outside of Meridian, Ms. Ivan pala $ 750,000 for the 7 rights to the gas, and his engineers have determined that approximately 100,000 pallons of natural gas could be extracted from the natural gas 8 reserve through delling activities. Ivan expects the grous Income from the property to be $300,000 in 2020, and taxable 9 Income is expected to be $40,000. During 2020, Ivan expects to extract 750 gallons of gas from the property. 11 Question 1: What is Ivan's cost depletion for 2020? 12 Question 2: What Is Ivan's percentage depletion for 2020? 13 Question 3: Based on the answers to Questions 1 and 2, what is the total depletion deduction for 2020? 14 10 15 Chapter 10 Homework Assignment Note: You must show all work for each question in this Excel spreadsheet to receive credit for this assignment. Please upload the completed Excel spreadsheet (showing all calculations) to Blackboard using the link provided with the homework assignment. Ivan Ford acquired the rights to a natural gas reserve located on a property outside of Meridian, MS. Ivan paid $ 750,000 for the rights to the gas, and his engineers have determined that approximately 100,000 gallons of natural gas could be extracted from the natural gas reserve through drilling activities. Ivan expects the gross income from the property to be $300,000 in 2020, and taxable income is expected to be $40,000. During 2020, Ivan expects to extract 750 gallons of gas from the property. Question 1: What Is Ivan's cost depletion for 2020? Question 2: What is Ivan's percentage depletion for 20207 Question 3: Based on the answers to Questions 1 and 2, what is the total depletion deduction for 2020? 8