Thomas Petroleum has the following information: The lease is subleased to Stevenson Oil Corporation for $300,000, and

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Thomas Petroleum has the following information:

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The lease is subleased to Stevenson Oil Corporation for $300,000, and Thomas retains an 1/16 ORI. At the date of the sublease, the FMV of the equipment is $180,000.

REQUIRED: Determine the tax basis of Thomas’ and Stevenson’s assets and the amount of any taxable income.

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Fundamentals Of Oil And Gas Accounting

ISBN: 9781593703639

6th Edition

Authors: Charlotte Wright

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Question Posted: Mar 08, 2024 10:01 AM

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Thomas Petroleum has the following information: The lease is subleased to Stevenson Oil Corporation for $300,000, and

Question:

Leasehold costs Accumulated depletion.. L&WE....... Accumulated depreciation.. $ 6,000 1,000 200,000 75,000

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Fundamentals Of Oil And Gas Accounting

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