Homework Answers
Basis in factory building = $300,000 - $100,000(allocated to land) i.e. $200,000
Milton adjusted basis for the building at the end of the first year = $200,000 - $4,922 i.e. $195,078
Because adjusted basis is the net of original cost reduced by cost recoveries.
Add Answer to:
2. Milton purchases land and a factory building for his business for $300,000 with $100,000 being...
need help to solve this problem Sarah exchanges a building and land (used in its business)...
need help to solve this problem
Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The assets have the following characteristics: Fair Market Value Sarah's real property Tyler's real property Equipment Adjusted Basis $120,000 60,000 50,000 $300,000 220,000 80,000 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her recognized gain is $ x. Her adjusted...
Problem 17-40 (a) (LO. 2, 4) On September 3, 2016, Ivory Company acquired an apartment building...
Problem 17-40 (a) (LO. 2, 4) On September 3, 2016, Ivory Company acquired an apartment building for $1,500,000 (with $300,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on September 30, 2019, for $1,400,000. Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property. If an amount is zero, enter "0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearest dollar. a. Compute...
35. Ron opens his own business repairing Volkswagen cars. To operate this business he purchases land,...
35. Ron opens his own business repairing Volkswagen cars. To operate this business he purchases land, constructs a building, and purchases several large pieces of machinery. Assume the land was purchased for $100,000, the building cost another $150,000 to construct, and the three pieces of machinery cost $40,000 each. For tax purposes Ron would depreciate the building over 30 years and the machinery over 7 years each. For financial reporting purposes, Ron depreciates the building over 40 years and the...
Problem 13-71 (Algorithmic) (LO. 6) Sarah exchanges a building and land (used in her business) for...
Problem 13-71 (Algorithmic) (LO. 6) Sarah exchanges a building and land (used in her business) for Tyler's land and building and some equipment (used in his business). The assets have the following characteristics: Sarah's real property Tyler's real property Equipment Adjusted Basis $6,960 3,480 3,132 Fair Market Value $17,400 13,920 5,220 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her recognized is s . Her adjusted basis in...
2. Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000.($500,000 of the purchas...
2. Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000.($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2020. a. $23,328 b. $80,000 c. $82,048 d. $92,500
6.On November 10 of year 1 Javier purchased a building, including the land it was on,...
6.On November 10 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,300,000; 20% was allocated to the basis of the land and the remaining 80% was allocated to the basis of the building. Using MACRS, what is Javier’s depreciation expense on the building for year 2? 7.On March 25 of year 1 Javier purchased an apartment building, including the land it was on....
You are thinking of building a factory. The plant will cost € 100,000 and can be...
You are thinking of building a factory. The plant will cost € 100,000 and can be used for two years. The factory construction will increase your profits by € 55000 at the end of the first year and by € 60000 at the end of the second year. After the factory it will have no value. What is the net present value of the plant if the interest rate is 10%. Would you be willing to build the factory?
9-32 An investor is considering buying some land for $100,000 and constructing an office building on...
9-32 An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed. Building Height 2 Stories 5 Stories 10 Stories $2,100,000 400,000 Cost of building (excluding $400,000 $800,000 cost of land) Resale value of land + 200,000 300,000 building after 20-year horizon Annual net rental income 70,000 105,000 256,000 *Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and an 8% MARR, determine which alternative,...
9- An investor is considering buying some land for $100,000 and constructing an office building 32...
9- An investor is considering buying some land for $100,000 and constructing an office building 32 on it. Three different buildings are being analyzed. Building Height 2 Stories 5 Stories 10 Stories Cost of building (excluding cost of land) |$500,000 $900,000 $2,200,000 Resale value* of land + building after 20-year 200,000 300,000 350,000 horizon Annual net rental income 70,000 110,000 215,000 * Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and a 7% MARR, determine...
9- An investor is considering buying some land for $100,000 and constructing an office building 32...
9- An investor is considering buying some land for $100,000 and constructing an office building 32 on it. Three different buildings are being analyzed Building Height 2 Stories 5 Stories 10 Stories |Cost of building (excluding cost of land) Resale value of land building after 20-year horizon Annual net rental income $500,000 $900,000 S2,200,000 200,000 300,000 350,000 110,000 215,000 70,000 Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and a 7% MARR, determine which alternative,...
need help to solve this problem
Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The assets have the following characteristics: Fair Market Value Sarah's real property Tyler's real property Equipment Adjusted Basis $120,000 60,000 50,000 $300,000 220,000 80,000 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her recognized gain is $ x. Her adjusted...
Problem 17-40 (a) (LO. 2, 4) On September 3, 2016, Ivory Company acquired an apartment building for $1,500,000 (with $300,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on September 30, 2019, for $1,400,000. Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property. If an amount is zero, enter "0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearest dollar. a. Compute...
35. Ron opens his own business repairing Volkswagen cars. To operate this business he purchases land, constructs a building, and purchases several large pieces of machinery. Assume the land was purchased for $100,000, the building cost another $150,000 to construct, and the three pieces of machinery cost $40,000 each. For tax purposes Ron would depreciate the building over 30 years and the machinery over 7 years each. For financial reporting purposes, Ron depreciates the building over 40 years and the...
Problem 13-71 (Algorithmic) (LO. 6) Sarah exchanges a building and land (used in her business) for Tyler's land and building and some equipment (used in his business). The assets have the following characteristics: Sarah's real property Tyler's real property Equipment Adjusted Basis $6,960 3,480 3,132 Fair Market Value $17,400 13,920 5,220 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her recognized is s . Her adjusted basis in...
2. Bhaskar purchased a new factory building and land on September 10, 2019, for $3,700,000.($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2020. a. $23,328 b. $80,000 c. $82,048 d. $92,500
9-32 An investor is considering buying some land for $100,000 and constructing an office building on it. Three different buildings are being analyzed. Building Height 2 Stories 5 Stories 10 Stories $2,100,000 400,000 Cost of building (excluding $400,000 $800,000 cost of land) Resale value of land + 200,000 300,000 building after 20-year horizon Annual net rental income 70,000 105,000 256,000 *Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and an 8% MARR, determine which alternative,...
9- An investor is considering buying some land for $100,000 and constructing an office building 32 on it. Three different buildings are being analyzed. Building Height 2 Stories 5 Stories 10 Stories Cost of building (excluding cost of land) |$500,000 $900,000 $2,200,000 Resale value* of land + building after 20-year 200,000 300,000 350,000 horizon Annual net rental income 70,000 110,000 215,000 * Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and a 7% MARR, determine...
9- An investor is considering buying some land for $100,000 and constructing an office building 32 on it. Three different buildings are being analyzed Building Height 2 Stories 5 Stories 10 Stories |Cost of building (excluding cost of land) Resale value of land building after 20-year horizon Annual net rental income $500,000 $900,000 S2,200,000 200,000 300,000 350,000 110,000 215,000 70,000 Resale value considered a reduction in cost-not a benefit. Using benefit-cost ratio analysis and a 7% MARR, determine which alternative,...
Most questions answered within 3 hours.
-
91. If the half – life of a sample of radioactive
material is 60 days, what...
asked 8 seconds ago -
White light (380nm-750nm) strikes a diffraction grating (420
lines/mm) at normal incidence. What is the highest-order...
asked 9 minutes ago -
1) Explain what is meant by a good being "excludable."?
2) Explain what is meant by...
asked 9 minutes ago -
I need help with this question:
Describe in detail at least two factors that stimulated American...
asked 16 minutes ago -
Calculate the Boyle temperature for helium assuming it follows
the Berthelot equation of state.
asked 16 minutes ago -
Summarize Strategic Corporate Social Responsibility, 4th edition
2017 book, chapter one and two.
asked 16 minutes ago -
1. If the standard deviations for return on stock A and stock B
are 28% and...
asked 32 minutes ago -
Please use python to explain.
Assume that the variables x and
y refer to strings. Write...
asked 38 minutes ago -
This table shows the US domestic demand and supply schedules
for oranges. Suppose the world price...
asked 38 minutes ago -
Please help me create a CLASS DIAGRAM for this code:
import pygame
from pygame.sprite import Sprite...
asked 39 minutes ago -
The Merriweather Printing Company is trying to decide on the
merits of constructing a new publishing...
asked 59 minutes ago -
29) Insulin is a water-soluble hormone transported in the blood.
Which describes a likely way in...
asked 1 hour ago