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Tina acquires an oil and gas property interest for $200,000 in the current year. The following informationRequirements about current year operations is supplied for purposes of computing the amount of Tina's depletion and a. What is the cost depletion amount if the IDCs are expensed? intangible drilling and development cost (IDC) deductions b. What is the cost depletion amount if the IDCs are capitalized? c. How much depletion is deducted on the tax return? d. Should the IDCs be capitalized or expensed? Explain. (Click the icon to view the additional information.) Requirements a. What is the cost depletion amount if the IDCs are expensed? b. What is the cost depletion amount if the IDCs are capitalized? Select the formula needed to compute the cost depletion amount and then calculate the cost depletion for requirements a and b Current year cost depletion More Info Requirement a Requirement b Requirement c. How much depletion is deducted on the tax return? (Assume Tina's gross income from the oil and gas property is substa The depletion deduction will be Estimated recoverable units Units produced Units sold IDCs Percentage depletion (after limitations 20,000 6,000 4,000 $20,000 $25,000 Choose from any list or enter any number in the input fields and then continue to the next question PrintDone

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