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1.At the beginning of 2013, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,200,000. After the timber is cleared, the land will have a residual value of $600,000. Roads to enable logging operations were constructed and completed on March 30, 2013. The cost of the roads, which have no residual value and no alternative use after the tract is cleared, was $240,000. During 2013, Terra logged 500,000 of the estimated five million board feet of timber.Required:Calculate the 2013 depletion of the timber tract and depreciation of the logging roads assuming the units of production method is used for both assets.
Casey owned stock in Jupiter Corporation that he donated to a university (a qualified charitable organization) on December 30, 2009. What is the amount of Casey's deduction assuming that he had purchased the stock for $10,000 on January 3, 2009, a..
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