Homework Answers
Answer:
a). Jose's basis for cost recovery is $258000 because the basis of the houseat the time of conversion is less than the $272800 fair market value.
c). Cost recovery for 2019 is = 258000 x 0.02879 (exhibit 8.8) = 7427.82
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Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $258,000. He used...
This was all the information provided. Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased...
This was all the information provided.
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $335,200, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 203,200 . b....
Just need help on C In 2016, José purchased a house for $203,200. He used the...
Just need help on C In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $354,700, he converted the house to rental property. If required, round your answers to the nearest dollar. a. José's basis for cost recovery for the property is $ 203,200 (Correct). b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it...
32. LO.1,2 In 2016, José purchased a house for $325,000 ($300,000 relates to the house; $25,000...
32. LO.1,2 In 2016, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2019, when the fair market value of the house was $400,000, he converted the house to rental property. What is José's cost recovery for 2019?
Problem 5-47 (Algorithmic) (LO. 8) On February 15, 2018, Leo purchased and placed in service a...
Problem 5-47 (Algorithmic) (LO. 8) On February 15, 2018, Leo purchased and placed in service a new car that cost $66,600. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any $ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain autom.biles. a. What MACRS convention applies to the new car?...
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2017, Leo purchased and placed in service a...
Problem 8-46 (Algorithmic)
(LO. 4) On April 30, 2017, Leo purchased and placed in service a
new car that cost $20,500. The business use percentage for the car
is always 100%. He does take the additional first-year
depreciation. If required, round your answers to the nearest
dollar. Click here to access the depreciation table of the
textbook. Click here to access the limits for certain automobiles.
a. What MACRS convention applies to the new car? Half-year b. Is
the automobile...
Problem 8-46 (Algorithmic) (LO. 4) On July 15, 2018, Leo purchased and placed in service a...
Problem 8-46 (Algorithmic) (LO. 4) On July 15, 2018, Leo purchased and placed in service a new car that cost $67,800. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any $ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car?...
Problem 8-46 (Algorithmic) (LO. 4) On March 30, 2018, Leo purchased and placed in service a new car that cost $64,2...
Problem 8-46 (Algorithmic) (LO. 4) On March 30, 2018, Leo purchased and placed in service a new car that cost $64,200. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS Convention applies to the new car? Half-year...
Exercise 8-23 (Algorithmic) (LO. 2) Lopez acquired a building on June 1, 2014, for $6,461,800. Compute...
Exercise 8-23 (Algorithmic) (LO. 2) Lopez acquired a building on June 1, 2014, for $6,461,800. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as residential rental real estate. 739,413 x b. Calculate Lopez's cost recovery deduction for 2019...
Problem 8-40 (LO. 2) Janice acquired an apartment building on June 4, 2019, for $1,600,000. The...
Problem 8-40 (LO. 2) Janice acquired an apartment building on June 4, 2019, for $1,600,000. The value of the land is $300,000. Assume Janice sold the apartment building on November 29, 2025. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. How is the property classified for MACRS? Residential rental real estate b. What is the life of the asset for MACRS? 27.5 years c. Determine Janice's...
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2018, Leo purchased and placed in service a new car that cost $63,0...
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2018, Leo purchased and placed in service a new car that cost $63,000. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car?...
This was all the information provided.
Problem 8-32 (Algorithmic) (LO. 1, 2) In 2016, José purchased a house for $203,200. He used the house as his personal residence. In December 2019, when the fair market value of the house was $335,200, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ 203,200 . b....
32. LO.1,2 In 2016, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2019, when the fair market value of the house was $400,000, he converted the house to rental property. What is José's cost recovery for 2019?
Problem 5-47 (Algorithmic) (LO. 8) On February 15, 2018, Leo purchased and placed in service a new car that cost $66,600. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any $ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain autom.biles. a. What MACRS convention applies to the new car?...
Problem 8-46 (Algorithmic)
(LO. 4) On April 30, 2017, Leo purchased and placed in service a
new car that cost $20,500. The business use percentage for the car
is always 100%. He does take the additional first-year
depreciation. If required, round your answers to the nearest
dollar. Click here to access the depreciation table of the
textbook. Click here to access the limits for certain automobiles.
a. What MACRS convention applies to the new car? Half-year b. Is
the automobile...
Problem 8-46 (Algorithmic) (LO. 4) On July 15, 2018, Leo purchased and placed in service a new car that cost $67,800. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any $ 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car?...
Problem 8-46 (Algorithmic) (LO. 4) On March 30, 2018, Leo purchased and placed in service a new car that cost $64,200. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS Convention applies to the new car? Half-year...
Exercise 8-23 (Algorithmic) (LO. 2) Lopez acquired a building on June 1, 2014, for $6,461,800. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as residential rental real estate. 739,413 x b. Calculate Lopez's cost recovery deduction for 2019...
Problem 8-40 (LO. 2) Janice acquired an apartment building on June 4, 2019, for $1,600,000. The value of the land is $300,000. Assume Janice sold the apartment building on November 29, 2025. If required, round your answers to the nearest dollar. Click here to access the depreciation table to use for this problem. a. How is the property classified for MACRS? Residential rental real estate b. What is the life of the asset for MACRS? 27.5 years c. Determine Janice's...
Problem 8-46 (Algorithmic) (LO. 4) On April 30, 2018, Leo purchased and placed in service a new car that cost $63,000. The business use percentage for the car is always 100%. He does not take the additional first-year depreciation or any § 179. If required, round your answers to the nearest dollar. Click here to access the depreciation table of the textbook. Click here to access the limits for certain automobiles. a. What MACRS convention applies to the new car?...
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