Cost depletion example from your text scrap happy

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Cost Depletion Example from Your TextScrap-Happy purchases a tract of forest land which they plan to useto harvest trees for the production of scrapbook paper. It isestimated that the tract contains 30,000 board feet of timber. Theoriginal cost of the property is $75,000, of which $60,000 isallocated to the timber and $15,000 to the land.What is the cost depletion per board foot?
If the company uses 10,000 board feet during the first year, howmuch will they expense under the cost depletion method?
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Depletion40
Class Exercises
1(a)1(b)a. A local accounting firm purchased 5 new computers for its newstaff members for a total cost of $10,000 on January 1, 2016.
b. A construction company purchased newfurniture for its main office on August 25, 2015,which cost $4,000 in total.
431(c)c. A landscaping firm purchased a new $30,000 Chevy S10 (alight truck) for the business on October 5, 2013.= $2,874 ($30,000 x 0.0958)
Depreciation44Residential Rental Property Mid-Month ConventionStraight Line – 27.5 Yearsd. Maggie and Mike purchased a townhouse for $350,000 onJuly 31, 2018, which they immediately rented out to a tenant.= $5,834.50 ($350,000 x 0.01667)1(d)
2(a)2.Part a: A manufacturing firm purchased machinery equipment on March 15, 2013 for$250,000, which was the only property it purchased that year. The firm sells the equipment onJanuary 15, 2018. Assume the firm always opts out of Sec. 179 and bonus if available and uses acalendar year tax period. How much total depreciation does the firm have for the machine in 2018?Step 1:Compute fullyear depreciation.
Part b: Assume the same example as in Part a except that the equipment was purchased onNovember 15, 2013. Does your answer for part a change? If so, what is the new amount of totaldepreciation?If not, why doesn’t it change?

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