QUESTION 8 0.5 points Save Answer Katie sold a computer with a 5-year useful life in 2019. The computer was purchased in Q2 2016, sold in Q3 2019, and was being depreciated under the half-year convention. Also, assume that no bonus depreciation was taken on the asset when it was first placed in service in 2016. What depreciation rate can Katie take on the computer asset in 2019? Record your answer as a percentage and round your answer to the 3rd decimal place. For example, 4.6878% should be entered as 4.688 QUESTION 9 0.5 points Save Answer Katie sold furniture with a 7-year useful life in 2019. The furniture was purchased in Q1 2015, sold in Q3 2019, and was being depreciated under the mid-quarter convention. Also, assume that no bonus depreciation was taken on the asset when it was first placed in service in 2015. What depreciation rate can Katie take on the furniture in 2019? Record your answer as a percentage and round your answer to the 3rd decimal place. For example, 4.6878% should be entered as 4.688 QUESTION 10 1 points Save Answer Daniel owns a ranch business and uses 4-wheelers to do ranch work. Occasionally, though, his family uses the 4-wheelers for fun. Phil put 1,000 miles on a 4-wheeler that he bought on January 15 for $10,000. Of the total miles driven, 250 miles were for personal use. Calculate his first year depreciation for this asset assuming a 5-year depreciable life and the half-year convention. QUESTION 11 0.5 points Save Answer Ashley incuired $10,000 in R&E costs to develop a specialized product during October of year 1. Ashley spent $5,000 in legal fees to receive a patent for the product in July of year 2. Ashley elected to capitalize and amortize the R&E costs over 60 months, and she expects the patent to have a 10 year life. What is Ashley's amortization in year 1? QUESTION 12 0.5 points Save Answer Ashley incurred $10,000 in R&E costs to develop a specialized product during October of year 1. Bethany spent $5,000 in legal fees to receive a patent for the product in July of year 2. Ashley elected to capitalize and amortize the R&E costs over 60 months, and she expects the patent to have a 10 year life. What is Ashley's amortization in year 2? Hint: Any unamortized amount of R&E costs must be capitalized into the cost of a patent. The R&E costs should only be amortized for the first 6 months of year 2, and any remaining basis will then get capitalized/added into the cost of the patent. The combined basis will then be amortized for the final 6 months of year 2. QUESTION 13 0.5 points Save Answer Magnificent Miners purchased a coal deposit for $1,000,000. It estimated it would extract 20,000 tons of coal from the deposit. For percentage depletion, the applicable percentage for coal is 10% of gross receipts. If Magnificent Miners extracted 3,000 tons of coal and collected $1,450,000 of gross receipts in year 1, calculate: Cost depletion: Percentage depletion: The actual depletion deduction that Magnificent Miners is entitled to for year 1: Enter your answer without dollar signs but with commas. For example, $100,000 must be entered as 100,000 QUESTION 14 0.5 points Save Answer Magnificent Miners purchased a coal deposit for $1,000,000. It estimated it would extract 20,000 tons of coal from the deposit. For percentage depletion, the applicable percentage for coal is 10% of gross receipts. If Magnificent Miners extracted 2,000 tons of coal and collected $1,100,000 of gross receipts in year 2, calculate: Cost depletion: Percentage depletion: The actual depletion deduction that Magnificent Miners is entitled to for year 2: Enter your answer without dollar signs but with commas. For example, $100,000 must be entered as 100,000
