Triton Corp. (an S corp) had $450,000 of income. Brittany is…

Triton Corp. (an S corp) had $450,000 of income. Brittany is 100% owner and her ordinary tax rate is 32% (assume all income on her return is taxed at 32%). What is the effective tax rate on Triton Corp.’s income? Make sure to incorporate the 20% QBI deduction in your analysis but ignore any self-employment tax.

Prime Supply Mine (LLC) purchased a silver deposit for $1.5…

Prime Supply Mine (LLC) purchased a silver deposit for $1.5 million. It estimated it would extract 500,000 ounces of silver from the deposit. Prime Supply mined the silver and sold it, reporting gross receipts of $1 million, $2.5 million, and $2 million for years 1-3 respectively. During years 1-3, Prime Supply reported net income (loss) from the silver deposit activity in the amount of $100,000, $300,000, and $1,000,000, respectively. The applicable percentage depletion for silver is 15%.  In years 1-3, Prime Supply actually extracted 300,000 ounces of silver as follows: What is Prime Supply’s depletion expense for year 2?