QUESTION 6 AMP Corporation (calendar year end) has 2020 taxable income of $1,725,000 before the 179 expense During 2020, AMP acquired the following assets Asset Placed in Service Basis Machinery September 12 $1,540,000 Computer Equipment February 10 365,000 Office Building April 2 480,000 Total $2,385,000 What is the maximum amount of 179 expense AMP may deduct for 2020 QUESTION 7 Assume that TDW Corporation (calendar year end) has 2020 taxable income of $650,000 before the 179 expense, acquired the following assets during 2020 Asset Placed in Service Basis Machinery October 12 $2,260,000 Computer Equipment February 10 268,000 Furniture April 2 880,000 Total $3,408,000 What is the maximum amount of 179 expense TDW may deduct for 2020 QUESTION 8 Assume that Timberline Corporation has 2020 taxable income of $245,000 before the 179 expense Asset Purchase Date Basis Furniture (7 year) December 1 $350,000 Computer Equipment (5 year) February 28 90,000 Copier (5 year) July 15 30,000 Machinery (7 year) May 22 480,000 Total $950,000 What is the maximum amount of 179 expense Timberline may deduct for 2020 QUESTION 9 Last Chance Mine (LC) purchased a coal deposit for $780,000 It estimated it would extract 12,000 tons of coal from the deposit LC mined the coal and sold it reporting gross receipts of $1 million for year 1 During year 1, LC reported net income from the coal deposit activity in the amount of $60,000 In year 1, LC actually extracted 3,000 tons of coal What is Last Chances cost depletion for years 1 QUESTION 10 Last Chance Mine (LC) purchased a coal deposit for $780,000 It estimated it would extract 12,000 tons of coal from the deposit LC mined the coal and sold it reporting gross receipts of $1 million for year 1 During year 1, LC reported net income from the coal deposit activity in the amount of $60,000 In year 1, LC actually extracted 3,000 tons of coal What is Last Chances percentage depletion for year 1 (the applicable percentage for coal is 10 percent)

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QUESTION 6 AMP Corporation (calendar year end) has 2020 taxable income of $1,725,000 before the 179 expense. During 2020, AMP acquired the following assets: Asset

QUESTION 6

AMP Corporation (calendar year end) has 2020 taxable income of $1,725,000 before the 179 expense. During 2020, AMP acquired the following assets:

Asset	Placed in Service	Basis
Machinery	September 12	$1,540,000
Computer Equipment	February 10	365,000
Office Building	April 2	480,000
Total		$2,385,000

What is the maximum amount of 179 expense AMP may deduct for 2020?

QUESTION 7

Assume that TDW Corporation (calendar year end) has 2020 taxable income of $650,000 before the 179 expense, acquired the following assets during 2020:

Asset	Placed in Service	Basis
Machinery	October 12	$2,260,000
Computer Equipment	February 10	268,000
Furniture	April 2	880,000
Total		$3,408,000

What is the maximum amount of 179 expense TDW may deduct for 2020?

QUESTION 8

Assume that Timberline Corporation has 2020 taxable income of $245,000 before the 179 expense.

Asset	Purchase Date	Basis
Furniture (7-year)	December 1	$350,000
Computer Equipment (5-year)	February 28	90,000
Copier (5-year)	July 15	30,000
Machinery (7-year)	May 22	480,000
Total		$950,000

What is the maximum amount of 179 expense Timberline may deduct for 2020?

QUESTION 9

Last Chance Mine (LC) purchased a coal deposit for $780,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts of $1 million for year 1. During year 1, LC reported net income from the coal deposit activity in the amount of $60,000. In year 1, LC actually extracted 3,000 tons of coal. What is Last Chances cost depletion for years 1?

QUESTION 10

Last Chance Mine (LC) purchased a coal deposit for $780,000. It estimated it would extract 12,000 tons of coal from the deposit. LC mined the coal and sold it reporting gross receipts of $1 million for year 1. During year 1, LC reported net income from the coal deposit activity in the amount of $60,000. In year 1, LC actually extracted 3,000 tons of coal. What is Last Chances percentage depletion for year 1 (the applicable percentage for coal is 10 percent)?