LO.6 Falcon has a sole proprietorship that owns a silver mine that she purchased several years ago
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LO.6 Falcon has a sole proprietorship that owns a silver mine that she purchased several years ago for $925,000. The adjusted basis at the beginning of the year is $400,000. For the year, Falcon deducts depletion of $700,000 (greater of cost depletion of $290,000 or percentage depletion of $700,000) for regular income tax purposes.
a. Calculate Falcon's AMT preference.
b. Calculate Falcon's adjusted basis for regular income tax purposes.
c. Calculate Falcon's adjusted basis for AMT purposes.
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Related Book For
Essentials Of Taxation Individuals And Business Entities 2019
ISBN: 9780357233290
1st Edition
Authors: William A Raabe, James C Young
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