Question

new 2018 tax law applies

On May 5 of the current tax year, Byrne purchased a patent that qualifies as a $ 197 intangible. The cost of the patent was $207,000 and Byrne is a calendar year taxpayer. In the current tax year, how much of the patent's cost may Byrne amortize? a. $1,150. b. $4,600. c. $9,200 d. $13,800 On January 15, 2019, Dillon purchased the rights to a mineral interest for $3,500,000. At that time, it was estimated that the recoverable units would be 500,000. During the year, 40,000 units were mined and 25.000 units were sold for $800,000. Dillon incurred expenses during 2019 of $500,000. The percentage depletion rate is 22% Determine Dillon's depletion deduction for 2019. a. $150,000 b. $175,000 c. $176,000 d. $200,000

Answer 1

Answer Answer : The purchase a patent that 197 intagible qualifies . - The cost of the patert was = 207,000 An intangible asset quailfies as see 197 intagible cannot be amortized for the pediat More 15 years where such pertod begin the month the intangible is aquiered on the month trade activity for income production The purchased in may Hence only. 8 moth mortization . (204000) * 15-year moeten

> (203000 X ) = $ 9.200 : Answer - C) = 9200