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ella [17]
3 years ago
11

For an oil and gas limited partnership (LP), allowances in the form of deductions are allowed by the IRS to be taken to compensa

te for a depleting resource. The allowance can be taken based on
Business
1 answer:
Triss [41]3 years ago
3 0

Answer:

The allowance can be taken based on:

a reduction (production) of the oil and gas reserves.

Explanation:

A limited partnership's allowance for depletion is a special form of depreciation used to account for the gradual reduction in the value of natural resources based on their usage or consumption.  There are two methods for recognizing depletion of natural resources.  They are the cost depletion method, which is based on usage, and the percentage depletion method, which is a percentage of gross earnings.  Then, depletion is different from depreciation, in that depreciation is for tangible assets, while depletion is for natural assets.

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Answer:

Consider the following answers

Explanation:

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(2) Website.

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3 0
3 years ago
The statement of cash flows for Baldwin Company shows what happens in the Cash account during the year. It can be seen as a summ
gavmur [86]

Answer:

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8 0
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Suppose your company sells services of $170 in exchange for $130 cash and $40 on account. Depreciation of $60 relating to equipm
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Answer and Explanation:

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