Question Completion Status: 2 points QUESTION 84 Oil and gas properties are entitled to a 15% statutory depletion allowance. Assume that Darlene purchased an oil reserve in the current year for $120,000 and it has 40,000 barrels of estimated reserves. Gross income from the reserve is $90,000 for the year. Taxable income from the reserve, before the depletion deduction, is $50,000. This year 6,000 barrels were extracted and sold. What is Darlene's depletion deduction for the year for tax purposes? $18,000 $13,500 $7,500 $6,000 50 2 points QUESTION 85 Georgie has gross income of $5,000 from an activity that has been deemed to be a hobby by the IRS. Her expenses related to the activity include property taxes of $3,000, operating expenses of $1,500, and depreciation expense of $800. What would be Georgie's deductible expenses for the year and where would they be taken? $3,000 Schedule A (Itemized Deductions) $3,000 Schedule C (Profit or Loss from Business) $5,000 Schedule A (itemized Deductions) $5,000 Schedule C (Profit or Loss from Business) $5,300 Schedule C (Profit or Loss from Business) QUESTION 86 1 points The Section 179 immediate expense election is available to the taxpayer on the purchase of a business building. True False