Finra Exam Series-7 Topic 5 Question 87 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 87
Topic #: 5

[All Series-7 Questions]

In terms of depletion, percentage depletion is better than cost depletion because it:

Apermits recovery of more than the original cost

Bis limited to production

Cis more widely available

Dis not subject to recapture

Show Suggested Answer

Suggested Answer: B

balance sheet. This report reflects the entire condition of the company by showing all assets, liabilities, and components of net worth.

by Christiane at May 13, 2024, 07:44 AM

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Lorriane

2 months ago

Percentage depletion is the tax planning equivalent of a cheat code. As long as it's not subject to recapture, I'm in!

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Rosita

1 months ago

B) is limited to production

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Jacki

1 months ago

I agree, percentage depletion is definitely a tax planning cheat code!

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Una

2 months ago

D) is not subject to recapture

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Corinne

2 months ago

A) permits recovery of more than the original cost

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Jerry

2 months ago

More widely available, you say? Excellent, I'll take it! Anything to make my tax calculations a little easier.

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Jeannetta

2 months ago

Hmm, percentage depletion is limited to production? Guess I can't use it to deplete my snack stash at home.

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Gail

2 months ago

Cost depletion is so limiting. Percentage depletion is the way to go - it's not subject to recapture. Saves me the headache of dealing with that.

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Gwenn

21 days ago

Cost depletion can be a hassle, percentage depletion is a better option.

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Elmira

22 days ago

I prefer percentage depletion too, it's much easier to deal with.

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Maricela

1 months ago

I agree, percentage depletion is definitely more advantageous.

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Kristeen

3 months ago

Percentage depletion allows me to recover more than the original cost? Sign me up! That's like finding money under the couch cushions.

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Rozella

2 months ago

Exactly! Unlike cost depletion, percentage depletion is not subject to recapture, making it even more appealing.

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Bulah

2 months ago

D) is not subject to recapture

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Laurena

2 months ago

That's right! Percentage depletion allows you to recover more than the original cost, making it a great option.

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Louisa

2 months ago

A) permits recovery of more than the original cost

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Tonja

3 months ago

I see both sides, but I think percentage depletion is more widely available which makes it a better option.

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Loren

3 months ago

I disagree, I believe cost depletion is better as it is limited to production.

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Jose

4 months ago

I think percentage depletion is better because it permits recovery of more than the original cost.

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