Eula Owns a Mineral Property That Had a Basis of $23,000

question 49

Multiple Choice

Eula owns a mineral property that had a basis of $23,000 at the beginning of the year.Cost depletion is $19,000.The property qualifies for a 15% depletion rate.Gross income from the property was $200,000 and net income before the percentage depletion deduction was $50,000.What is Eula's tax preference for excess depletion?

• A)$15,000.
• B)$23,000.
• C)$25,000.
• D)$0.
• E)None of the above.

---

Definitions:

Psychosexual Development

Psychosexual Development is a Freudian theory describing how personality develops during childhood through a series of stages focused on erogenous zones.

Freud

Sigmund Freud, an Austrian neurologist, is known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Fixated

In psychology, this term describes an obsessive or persistent concentration on a specific issue, idea, or task.

Defense Mechanisms

Strategies employed by the mind to cope with uncomfortable emotions or thoughts, often unconsciously, leading to behaviors that might mitigate psychological stress.