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Sequoia (S Corporation) purchased the rights to cut timber on several tracts of...

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Accounting

Sequoia (S Corporation) purchased the rights to cut timber on several tracts of land over a 15-year period. It paid $500,000 for cutting rights. A timber engineer estimates that 250,000 board feet of timber will be cut. During the current year, Sequoia cut 45,000 board feet of timber, which it sold for $900,000.
8. Using cost depletion method, what is Sequoia's depletion deduction for the current year?
If Sequoia has one shareholder, whose individual marginal ordinary tax rate is 24% and dividend tax rate is 20% what is the tax rate owed on the sale of timber if the business has no other deductible expenses?
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