What is the UBIA of the following assets? A vehicle purchased for $30,000 and used 80%...

Question

Question

What is the UBIA of the following assets? A vehicle purchased for $30,000 and used 80%...

What is the UBIA of the following assets? A vehicle purchased for $30,000 and used 80% for business, an apartment building purchased for $100,000, including $20,000 for the land, and furniture purchased for $10,000.

$114,000

$120,000

$134,000

$140,000

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Calculation of Unadjusted Basis (UBIA) of the assets

For purchased or produced qualified property, UBIA is its cost

Vehicle = 30,000 x 80% (since vehicle was used 80% for business)

= $24,000

Building = 100,000 - 20,000 (Land and intangible assets such as patents, trademarks, etc. do not qualify and Land has been excluded)

= $80,000

Furniture = $10,000

Hence, total UBIA of the assets = 24,000 + 80,000 + 10,000

= $114,000

Hence, correct option is (a)

Kindly give a positive rating if you are satisfied with the answer. Feel free to ask if you have any doubts. Thanks

Add a comment

Answer 2

Similar Homework Help Questions

what is the ubia of the following assets a vehicle purchased for $30,000 and used 80%...

what is the ubia of the following assets a vehicle purchased for $30,000 and used 80% for business and apartment building purchased for $100,000 including $20,000 for the land used 100% for business and future purchase at $10,000 and used 100% for business the correct answer is 114,000 a
Kayden purchased the following: an apartment building for $123,000, including $19,500 for the land. furniture for...

Kayden purchased the following: an apartment building for $123,000, including $19,500 for the land. furniture for $8649. pick up truck for $27,500 used 75% for business. what is cadence and adjusted basis immediately after acquisition (UBIA) of these assets? - $112,149 - $132,774 - $152,274 - $240,149
Question 3 of 30. Brenda purchased a business for $120,000 and received a building, FMV $80,000:...

Question 3 of 30. Brenda purchased a business for $120,000 and received a building, FMV $80,000: land, FMN $10,000 and furniture fixtures, FMV $30,000. She spent $10,000 on legal fees to make the purchase. What is the basis of these me? $82,500 building: $12,500 land; $35,000 furniture and fixtures. $88,750 building: $11,250 land: $30,000 furniture and fixtures. $80,000 building: $10,000 land; $30,000 furniture and fixtures. $86,667 building: $10,833 land: $32,500 furniture and fixtures. Mark for follow up of the

brenda purchased a business for 120,000. and received s building fmv 80,000. land fmv 10,000. and furniture and fixtures...

brenda purchased a business for 120,000. and received s building fmv 80,000. land fmv 10,000. and furniture and fixtures fmv 30,000. she spent 10,000. on legal fees to make thr purchase what is the basis for these items
brenda purchased a business for 120,000. and received s building fmv 80,000. land fmv 10,000. and furniture and fixtures...

brenda purchased a business for 120,000. and received s building fmv 80,000. land fmv 10,000. and furniture and fixtures fmv 30,000. she spent 10,000. on legal fees to make thr purchase what is the basis for these items
Sheridan Industries purchased the following assets and constructed a building as well. All this was done...

Sheridan Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $200,000 cash. The following information was gathered. Description Initial Cost on Seller’s Books Depreciation to Date on Seller’s Books Book Value on Seller’s Books Appraised Value Machinery $200,000 $100,000 $100,000 $180,000 Equipment 120,000 20,000 100,000 60,000 Asset 3: This machine was acquired by making a $20,000 down...

QUESTIONS DLW Corporation acquired and placed in service the following assets during the year Asset Computer...

QUESTIONS DLW Corporation acquired and placed in service the following assets during the year Asset Computer equipment Furniture Commercial building Date Acquired 2/17 5/12 11/1 Cost Basis $10,000 $16.000 $270.000 Assuming DLW does not elect 5179 expensing and elects not to use bonus depreciation, what is DLWs year 3 cost recovery for each asset if DLW sells all of these assets on 1/23 of year 37 QUESTION G On November 10 of yoor 1 Javier purchased a building, including the...
Depreciation claimed. Cash received in an exchange. Mark for follow up Question 2 of 30. Which of these items decre...

Depreciation claimed. Cash received in an exchange. Mark for follow up Question 2 of 30. Which of these items decreases basis in an asset? The cost of capital improvements The cost of restoration after a casualty. Depreciation claimed. O Cash paid in an exchange. Mark for follow up Question 3 of 30. Brenda purchased a business for $120,000 and received a building, FMV $80,000; land, FMV $10,000; and furniture and fixtures, FMVS of these items? $82,500 building: $12,500 land: $35,000...
During 2001, Loser Corporation had the following balance sheet: Asset &nbsp

During 2001, Loser Corporation had the following balance sheet: Asset FMV AB Cash $40,000 $40,000 Land A $30,000 $80,000 Land B $30,000 $20,000 Total Assets $100,000 $140,000 Capital Stock/Retained Earnings $100,000 $140,000 During this year, they made the following liquidating distributions to their shareholders: Shares Shareholders Shareholder Owned Property Basis in Stock Al 600 Land A and $30,000 $30,000 cash Baker 300 Land B $50,000 Charlie 100 $10,000 Cash $20,000 Land A was contributed by Al...

e Cambridge Business Publishee Accounting for Long-Lived and Intangible Assets Chapter 9 PROBLEMS-SET A P9-1A. Acquisition...

e Cambridge Business Publishee Accounting for Long-Lived and Intangible Assets Chapter 9 PROBLEMS-SET A P9-1A. Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) LO1 related to the construction of a new home office for Norma Company. Cost of land site, which included an old apartment building appraised at $75,000 Legal fees, including fee for title search. .. Payment of apartment building mortgage and related interest due at time of sale Payment for delinquent property taxes assumed...

What is the UBIA of the following assets? A vehicle purchased for $30,000 and used 80%...

Homework Answers

Add Answer to:
What is the UBIA of the following assets? A vehicle purchased for $30,000 and used 80%...

Post as a guest

Earn Coins