On January 1, 20XA, Rain Oil Corporation bought a developed lease for $300,000. During 20XA, Rain…

On January 1, 20XA, Rain Oil Corporation bought a developed lease for $300,000. During 20XA, Rain Oil Corporation incurred $600,000 of IDC on a successful well. Reserves of 400,000 barrels were discovered, and 100,000 barrels were produced and sold. Gross income from production was $2,000,000. On January 4, 20XB, the company sold the property for $700,000. All reserve, production, and sales data apply only to Rain Oil Corporation.

 a. Determine the amount of ordinary income and the amount of any capital gain assuming Rain Oil is an integrated producer and that part of the IDC is capitalized as required. Assume that all of the IDC was incurred on April 1, 20XA.

b. Determine the amount of ordinary income and the amount of any capital gain assuming an independent producer, percentage depletion of 15%, and that all the IDC was expensed as incurred. Ignore the 100% and 65% limitations.

 

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Online Academic Experts
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Business Management
Awesome job, Thank you
Customer 453201, June 12th, 2022
Nursing
The writer was timely and proficient. I had to ask for a revision, but I got it back quickly with no other issues. Would use this essay writing service again
Customer 452441, November 14th, 2021
Literature
Thank you!
Customer 453145, April 19th, 2022
Human Resources Management (HRM)
I finished the first deliverable of a project presentation but had no time to finish my second deliverable. The writer revamped my first deliverable and made it much more appealing! Not only was I impressed with the content but I was so grateful for the time they took to redo the background. I have been under a lot of pressure at work and at home so this has been a great service when I have had little time! I appreciate the detail and help! Always on time and always exceeding expectations!
Customer 453077, April 5th, 2022
Education
N/A
Customer 453057, May 23rd, 2022
Business Studies
Thank you very much for a good job done and a quick turn around time.
Customer 452615, March 31st, 2021
Humanities
Thank youuuu
Customer 452729, May 30th, 2021
Nursing
Impressive writing
Customer 452547, February 6th, 2021
Health Care
The writer did not follow my choice of topic (Food/Water Insecurity, Hunger, & Poverty), the paper was instead written about Climate Change in Africa. However, the paper was still great and informative. Thank you!
Customer 452777, January 28th, 2022
Psychology
Received before the deadline. Great job!
Customer 453027, January 15th, 2022
Psychology
quick, fast and exact!
Customer 453027, May 24th, 2022
Health Care
awesome work
Customer 452777, October 14th, 2021
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat
Live ChatWhatsApp