Please answer the questions below. all information i was given is attached

1. Belmont Oil Company, a full cost company, incurred intangible costs during 20XA related to the following: Amount Date Incurred Dry exploratory well $500,000 June 1 Dry development well 400,000 June 1 Successful exploratory well 600,000 June 1 Water injection well 300,000 Aug 1 Deepening a well (successful) 100,000 Aug 1 Workover, minor 50,000 Aug 1 REQUIRED: a. Assuming Belmont is an independent producer, how much IDC can it deduct for 20XA? b. How much IDC could Belmont deduct as an integrated producer? 8. During early 20XA, Terry Petroleum incurred G&G costs of $45,000 for Project Area 12. As a result of the G&G, three areas of interest were identified. Detailed G&G was conducted on the areas of interest at the following costs: Interest Area 1 2 3 Cost $80,000 50,000 60,000 As a result of the detailed G&G studies, the following leases were acquired: Interest Area Lease Acres Interest 1 A 2,000 100% of WI B 3,000 50% of WI C 6,000 25% of WI 2 D 5,000 100% of WI 3 None None None REQUIRED: Determine the tax basis of any assets and the amount of any tax deductions. On March 1, 20XA, Bryce Mott purchases mineral rights (MR) for $80,000. On June 1, 20XA, he leases the mineral rights to Hampton Oil Company, retaining a 1/8 royalty interest (RI). Hampton Oil Company pays Mott a lease bonus of $5,000. On June 1, 20XB, a delay rental of $1,000 is received by Mott. Oil royal- ties of $30,000 are paid to Mott in 20XC. Reserves at 12/31/20XC are 20,000 barrels, and production and sales for the year are 3,000 barrels. The reserve, production, and sales data apply only to Bryce Mott. REQUIRED: Determine the tax basis of any assets owned by Bryce Mott and the amount of any tax revenues reported and any tax deductions taken by Bryce Mott in each of the three years. 18. Colley Energy, an independent producer, has average production from Lease A of 100 bbl/day in 20XA from Lease A. The average selling price of oil in 20XA is $120/bbl. Net income from Lease A in 20XA is $820,000, and taxable income of the company is $2,000,000. REQUIRED: Compute percentage depletion. 1. Belmont Oil Company, a full cost company, incurred intangible costs during 20XA related to the following: Amount Date Incurred Dry exploratory well $500,000 June 1 Dry development well 400,000 June 1 Successful exploratory well 600,000 June 1 Water injection well 300,000 Aug 1 Deepening a well (successful) 100,000 Aug 1 Workover, minor 50,000 Aug 1 REQUIRED: a. Assuming Belmont is an independent producer, how much IDC can it deduct for 20XA? b. How much IDC could Belmont deduct as an integrated producer? 8. During early 20XA, Terry Petroleum incurred G&G costs of $45,000 for Project Area 12. As a result of the G&G, three areas of interest were identified. Detailed G&G was conducted on the areas of interest at the following costs: Interest Area 1 2 3 Cost $80,000 50,000 60,000 As a result of the detailed G&G studies, the following leases were acquired: Interest Area Lease Acres Interest 1 A 2,000 100% of WI B 3,000 50% of WI C 6,000 25% of WI 2 D 5,000 100% of WI 3 None None None REQUIRED: Determine the tax basis of any assets and the amount of any tax deductions. On March 1, 20XA, Bryce Mott purchases mineral rights (MR) for $80,000. On June 1, 20XA, he leases the mineral rights to Hampton Oil Company, retaining a 1/8 royalty interest (RI). Hampton Oil Company pays Mott a lease bonus of $5,000. On June 1, 20XB, a delay rental of $1,000 is received by Mott. Oil royal- ties of $30,000 are paid to Mott in 20XC. Reserves at 12/31/20XC are 20,000 barrels, and production and sales for the year are 3,000 barrels. The reserve, production, and sales data apply only to Bryce Mott. REQUIRED: Determine the tax basis of any assets owned by Bryce Mott and the amount of any tax revenues reported and any tax deductions taken by Bryce Mott in each of the three years. 18. Colley Energy, an independent producer, has average production from Lease A of 100 bbl/day in 20XA from Lease A. The average selling price of oil in 20XA is $120/bbl. Net income from Lease A in 20XA is $820,000, and taxable income of the company is $2,000,000. REQUIRED: Compute percentage depletion