Find the cost depletion allowance the company can claim

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1. Yamachi and Nadler has a gross income of $7.5 million for the year. The combination of depreciation and operating expenses total $4.3 million for the year. Calculate the company's federal income tax liability for the year.

2. An asset that was depreciated over a five-year period by the MACRS method has a book value of $33,025 at the end of year three. Calculate the original purchase price of the asset.

3. NA Forest Resources purchased forest acreage for $500,000 from which an estimated 200 million board feet is recoverable. In its first year of operation, the company recovered 24 million board feet. Find the cost depletion allowance the company can claim during its first year of operation.

Reference no: EM13186463


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