BHL owns only one asset-the warehouse building and related land that is rented by Quantro for $39,600 per year. The property was originally owned by Quantro but was sold to BHL several years ago as a means to reduce the risk exposure of this appreciating asset. On December 31, 2023 (the year-end of both companies), BHL sold the warehouse property to a third party for $407,000 (land $44,000, building $363,000). The property originally cost $352,000 (land $27,500, building $324,500). The undepreciated capital cost of the building at December 31, 2022, was $279,400. One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $528,000. (land $55,000, building $473,000.). Required: R Determine BHL's net income for tax purposes for 2023.
BHL owns only one asset-the warehouse building and related land that is rented by Quantro for $39,600 per year. The property was originally owned by Quantro but was sold to BHL several years ago as a means to reduce the risk exposure of this appreciating asset. On December 31, 2023 (the year-end of both companies), BHL sold the warehouse property to a third party for $407,000 (land $44,000, building $363,000). The property originally cost $352,000 (land $27,500, building $324,500). The undepreciated capital cost of the building at December 31, 2022, was $279,400. One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $528,000. (land $55,000, building $473,000.). Required: R Determine BHL's net income for tax purposes for 2023.
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 43P: LO.2, 3, 9 On June 5, 2018, Javier Sanchez purchased and placed in service a new 7-year class asset...
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BHL owns only one asset-the warehouse building and related land that is rented by Quantro for $39,600 per year. The property was
originally owned by Quantro but was sold to BHL several years ago as a means to reduce the risk exposure of this appreciating asset.
On December 31, 2023 (the year-end of both companies), BHL sold the warehouse property to a third party for $407,000 (land
$44,000, building $363,000). The property originally cost $352,000 (land $27.500, building $324,500). The undepreciated capital cost
of the building at December 31, 2022, was $279,400.
One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $528,000. (land
$55,000, building $473,000.).
Required:
Determine BHL's net income for tax purposes for 2023,
B
Answer is not complete.
Rent
CCA on new warehouse
Recapture of CCA
Property Income
Building Taxable capital gains
Land: Taxable capital gains
Taxable Capital Gains
$
0
S
0
Net Income for Tax purposes
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