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77)Daschle LLC completed some research and development during June of the current year.The related costs were $60,000. If Daschle wants to capitalize and amortize the costs asquickly as possible, what is the total amortization expense Daschle may deduct duringthe current year?77)A)$7,000.B)$12,000.C)$0.D)$6,500.E)None of the choices are correct.78)Jorge purchased a copyright for use in his business in the current year. The purchaseoccurred on July 15thand the purchase price was $75,000. If the copyright has aremaining life of 75 months, what is the total amortization expense Jorge may deductduring the current year? (Assume not in an asset acquisition to which §197 applies) 78)79)Gessner LLC patented a process it developed in the current year. The patent is expectedto create benefits for Gessner over a 10-year period. The patent was issued on April 15thand the legal costs associated with the patent were $43,000. In addition, Gessner hadunamortized research expenditures of $15,000 related to the process. What is the totalamortization expense Gessner may deduct during the current year?79)80)Santa Fe purchased the rights to extract turquoise on a tract of land over a five-yearperiod. Santa Fe paid $300,000 for extraction rights. A geologist estimates that Santa Fewill recover 5,000 pounds of turquoise. During the current year, Santa Fe extracted1,500 pounds of turquoise, which it sold for $200,000. What is Santa Fe's cost depletionexpense for the current year?80)12
81)Santa Fe purchased the rights to extract turquoise on a tract of land over a five-yearperiod. Santa Fe paid $300,000 for extraction rights. A geologist estimated that Santa Fewill recover 5,000 pounds of turquoise. During the past several years, 4,000 pounds wereextracted. During the current year, Santa Fe extracted 1,500 pounds of turquoise, whichit sold for $250,000. What is Santa Fe's cost depletion expense for the current year?81)A)$60,000.B)$190,000.C)$160,000.D)$90,000.E)None of the choices are correct.82)Lucky Strike Mine (LLC) purchased a silver deposit for $1,500,000. It estimated itwould extract 500,000 ounces of silver from the deposit. Lucky Strike mined the silverand sold it reporting gross receipts of $1.8 million, $2.5 million, and $2 million foryears 1 through 3, respectively. During years 1 - 3, Lucky Strike reported net income(loss) from the silver deposit activity in the amount of ($100,000), $400,000, and$100,000, respectively. In years 1 - 3, Lucky Strike actually extracted 300,000 ounces ofsilver as follows:Ounces extracted per yearYear 1Year 2Year 350,000150,000100,000What is Lucky Strike's depletion expense for year 2 if the applicable percentagedepletion for silver is 15 percent?82)ESSAY. Write your answer in the space provided or on a separate sheet of paper.