At the beginning of 2020, Emma owned two residential rental properties. During2020 she sold Building 1 and purchased a new building (Building 3). Detailsrelated to the properties are as follows:Total rent received20,000Total expenses paid to earn rental income, excluding CCA12,000Building #1 opening UCC72,000Building #2 opening UCC180,000Proceeds of disposition on building #1 on April 30, 2020120,000Original cost of building #180,000Cost of new rental building purchased on May 1, 2020 (land excluded) 250,000Required:Compute the minimum rental income for Emma in 2020. Show your work!

Rental income refers to the income that is earned by renting a flat, room, house, and building and…

Answered: Required: Compute the minimum rental…

Business

Accounting

Required: Compute the minimum rental income for Emma in 2020. Show your work!

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 38P

See similar textbooks

Related questions

Q: b. Applying the 2022 Social Security benefit formula, calculate the monthly social security benefit…

A: Social security benefit = 90% of first $1024 of AIME + 32% of any amount over $1024 less than $6172…

Q: Henry would like to have a retirement income of $3,000 per month (month-end payments). How much must…

A: We need to use present value of ordinary annuity(payment due at end of period) formula to solve this…

Q: 11. During 2020, a person receives Social Security at age 63 and is earning $23,000/year at a…

A: Note: I am supposed to provide the solution of question number 11. Please repost the…

Q: should this person be willing to pay more in monthly rent to live in the CBD? Check the answer with…

A: The decision regarding about how much more money have to be paid by the person or any business for…

Q: Jenny has a monthly salary of $5,000 and an additional monthly allowance of $1,000. In Year 2020,…

A: In this we have to find out monthly mortgage payments and from that we can get the MSR and TDSR.

Q: thiy, how much should Marvin deposit on December 31, 2022 in order to achieve h

A: Given PMT=4000 RATE =2%/12 N=25*12=300

Q: a. Applying the FICA tax rates and rules for 2022, calculate how much you would pay in FICA taxes if…

A: * As per Bartleby policy, if question are different then answer first question only. For 2022, the…

Q: Boy should record the sale in January 2019 at

A: Sale value is the value which is received at the time of the sale of the asset or the inventory by…

Q: Irene needs money to buy a new laptop since the deadline for her finals exam is approaching. On…

A: Loan = 50,000 Simple interest rate = 10℅ Borrowing date = 5-Dec-21 Repayment date = 1-Apr-22 Time…

Q: Can Olivia and Anthony Afford This Home Using the Monthly Income Loan Criterion? Next week, your…

A: Here, Monthly Income is $125,000 Current (pre mortgage) installment loan, credit card, and car loan…

Q: Susanna wants to purchase a house costing $203,346. She plans to put $49,498 toward a down payment…

Q: Explain which information you would need to take into consideration when deciding whether to receive…

A: Here we will take into consideration the concept of time value of money. As per the concept of time…

Q: When Should Michael Pay Housing Costs? On April 1 of next year, Michael is purchasing a $225,000…

A: The LTV ratio is calculated using the following formula: LTV =Principal amountMarket Value of the…

Q: (g) In Illinois, the Assessor's Office for the township you live in puts an assessed value on your…

A: Assessed value of a asset is the value determined by a officer, it is the updated value of a house…

Q: Calculate PAYE and SRT by Dr. Vunna for the 2021 year.

A: Given in the question: Net Income of Shop 1 $104,000 Net Income of Shop 2 $190,000…

Q: At retirement age in 2021, an individual has an average yearly indexed income of $40,000. How much…

A: PIA: A PIA (Primary Insurance Amount) is the monetary benefit (rounded up to the next $1) that is…

Q: During 2020, a person receives Social Security at age 63 and is earning $23,000/year at a part-time…

A: Social security payments refers to the fixed form of amount or compensation that is paid on regular…

Q: Luke's company has transferred him to Peterborough. He finds two housing options near his office. a.…

A: Option 1Monthly Rent = 475 (Including utilities) Option 2Monthly Rent = 390 (Including water…

Q: Vincent was receiving rental payments of $3,000 at the beginning of every month from the tenants of…

A: The capitalization rate: The capitalization rate or cap rate is used to determine the rate of return…

Q: The Marco family—comprising Mrs. Marco aged 40, Mr. Marco, aged 39, and their three young children—…

A: Hi, since you have posted a question with multiple sub-parts, we will answer the first three as per…

Q: Ramzi can make an RRSP contribution

A: Given in the question: The earned income of Ramzi during the year 2020 = 92,000 It is clear from the…

Q: S benefit is $4,194 (A

A: The social security benefit is the benefits which are received by the employee once the said…

Q: Susanna wants to purchase a house costing $212,286. She plans to put $51,874 toward a down payment…

A: Cost of house = $ 212,286 Down payment = $ 51,874 Mortgage amount (PV) = 212286-51874 = $ 160412…

Q: Today is 1 July 2021. You are looking to purchase an investment property today (after months of…

A: Note: This question contains two parts. The first has been solved below. There is a reference to L12…

Q: Christina is deciding whether or not to enroll in a one-year academic program at the start of 2023…

A: The internal rate of return is the rate which equates the present value of cash inflows from a…

Q: Dee is in the process of estimating her client's retirement funding need. Based on the following…

A: Retirement fund or pension fund is referred as the superannuation fund in the different nations,…

Q: rk on July 1, 2020, as a staff accountant at a nearby professional services firm with a starting…

A: a) Determine the number of withholding allowances that I would claim on her Form W-4. Jane would…

Q: A landlord needs to update a rental house due to it's age, so it can be habitable again. If he has…

A: The question is based on the concept of calculation of maximum affordable loan for the given monthly…

Q: Assume the total cost of a college education will be $245,000 when your child enters college in 15…

A: Amount we have (present Value) is $108,000 Required Amount after 15 years (Future Value) is $245,000…

Q: Preparing Income and Expense Statement: Sara and Rahim are about to construct their income and…

A: Income and Expense Statement for Sara and Rahim for the year ending August 31, 2020 Expenses…

Q: erome and Laurie are signing the real estate papers tomorrow on the purchase of their first home.…

A: RRSP: Registered Retirement Savings Plan It is an investment in which money is saved for…

Q: Calculate the equivalent effective monthly rate. Give your answer as a percentage to 4 decimal pl

A: Effective annual rate = (1+monthly interest rate)12 -1 Monthly interest rate =(1+EAR)1/12 -1

Q: Suppose your first job pays you Php 300,000 annually. Answer the following questions assuming (a)…

A: Financial planning is necessary for individuals as well as any organization. Planning helps to find…

Q: Today is 1 July 2021. You are looking to purchase an investment property today (after months of…

A: Here, Borrowed Amount is $490,000 Effective Interest Rate is 3% Compounding Period is Monthly i.e.…

Q: annual payments at t = 5, 6, and 7 be to cover Laila's anticipated college costs?

A: Education Planning involves estimating the annual cost over the required period. The very Annual…

Q: Your mom asked your opinion if she will be joining the cooperative in her office. She wants to know…

A: Monthly payment is made at the beginning of the month. Payment made at the end of the month is…

Q: Assume that you are 18 years old and deciding whether to go to university or start working. If you…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Generally stated within the real estate industry, a person can afford to buy a home costing 2.5…

A: A person can afford to buy a home costing 2.5 times his annual income. Cost of house= $34.5 TS This…

Q: During 2020, Jeff has the following startup costs for his new lawn-care business:…

A: solution concept The start up cost are allowed for deduction in the following manner Upto $5000 in…

Q: Rex rents out his vacation home for 10 months and lives in his vacation home for the remainder of…

A: SOLUTION- An income statement is a financial statement that shows you how profitable your business…

Q: Khairy is deciding if he should pursue a professional course for one year, from January to December…

A: While calculating Net present value, involvement of opportunity cost is also considered as…

Q: Your friend is currently paying $734 in rent monthly in Fort Wayne and would rather apply the…

A: We need to use excel PV function to calculate amount borrow or loan value. The formula is…

Q: Susanna wants to purchase a house costing $203,346. She plans to put $49,498 toward a down payment…

A: House Purchase Price = 203,346 Down payment = 49,498 Loan Amount = House Purchase Price - Down…

Q: Joe wants to own a home in the future. He asks you describe an advantages and disadvantage of a FRM…

Question

100%

At the beginning of 2020, Emma owned two residential rental properties. During
2020 she sold Building 1 and purchased a new building (Building 3). Details
related to the properties are as follows:
Total rent received
20,000
Total expenses paid to earn rental income, excluding CCA
12,000
Building #1 opening UCC
72,000
Building #2 opening UCC
180,000
Proceeds of disposition on building #1 on April 30, 2020
120,000
Original cost of building #1
80,000
Cost of new rental building purchased on May 1, 2020 (land excluded) 250,000
Required:
Compute the minimum rental income for Emma in 2020. Show your work!

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Alice purchases a rental house on August 22,2019, for a cost of $174,000. Of this amount, $100,000 is considered to be allocable to the cost of the home, with the remaining $74,000 allocable to the cost of the land. What is Alice's maximum depreciation deduction for 2019 using MACRS? $2,373 $1,970 $1,364 $1,061 $1,009
In March 2019, Helen Carlon acquired used equipment for her business at a cost of 300,000. The equipment is five-year property for regular tax depreciation purposes. a. If Helen depreciates the equipment using the method that will produce the greatest deduction for 2019 for regular income tax purposes, what is the amount of the AMT adjustment? b. Draft a letter to Helen regarding the choice of depreciation methods. Helens address is 500 Monticello Avenue, Glendale, AZ 85306.
On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Click here to access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS.$fill in the blank 98b1bc044f93fcc_1 b. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
On September 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $197,400. Holly also owns another residential apartment building that she purchased on November 15, 2020, with a cost basis of $214,000. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS. b. Calculate Holly's total depreciation deduction for the apartments for 2021 using MACRS.
On February 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $209,000. Holly also owns another residential apartment building that she purchased on July 15, 2020, with a cost basis of $384,200. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
On April 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $199,000. Holly also owns another residential apartment building that she purchased on April 15, 2020, with a cost basis of $516,000. Click here to access the depreciation tables. If required, round intermediate calculations and final answers to nearest dollar. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS. $ b. Calculate Holly's total depreciation deduction for the apartments for 2021 using MACRS. $
Stephen purchased a rental property on 03 August 2020 and has rented the property from this date.He incurred the following expenses when purchasing the property –> $6,320 Lender’s Mortgage Insurance> $15,987 Stamp duty on transfer of the property> $1,500 Mortgage broker’s fee> $750 Conveyancing fees> $600 Bank loan establishment fee> $700 Stamp duty on the mortgageCalculate how much Stephen can claim in borrowing costs for the 2021 year and select the correct answer below. $1,766 $1,658 $1,311 $1,442 $1,879
At the end of the current year 2020, Ted Cub owned two residential rental properties. Rental property #1 cost $135,000 (land $50,000, building $85,000) and at the close of last year had a UCC of $69,000. Rental property #2 was acquired in the current year for $225,000 (land $85,000, building $140,000) Revenue and expenses for the rental properties during the year were as follows Property #1 Property #2 Total Revenue $15.250 $6.500 $21.750 Expenses: Mortgage interest Repairs & maintenance Property tax Insurance (500) (6,500) (3,100) (500) (10,600) (3,500) (0) (1,000) (200) (4.700) (4,000) (6,500) (4,100) (700) (15.300) Income $ 4.650 $1.800 $ 6.450 Determine the maximum CCA deduction for the rental properties for the current year.
Allie purchased an office building on October 23, 2018 for $150,000. She uses this building in her business. What is the amount of depreciation on this asset for 2021? $5.454 O $8,025 O $1,137 O $3,846 O $803
On October 3, 2023, Stella purchased an office building for $2,200,000. The land was valued at $500,000. On July 5, 2027 Stella sold the office building. Calculate Stella’s cost recovery deduction for 2023. Calculate Stella’s cost recovery deduction for 2027.
On August 2, 2020, Wendy purchased a new office building for $3,800,000. On October 1, 2020, she began to rent out office space in the building. On July 15, 2024, Wendy sold the office building. a. Determine Wendy's cost recovery deduction for 2020. b. Determine Wendy's cost recovery deduction for 2024. 1
Lyka provided the following data on sale of his personal property sold in 2018 held by him for 15 months: Jerry, married, with 2 minor choldren, had the following data: 2019 2020 Business income P 410.800 P 306,700 Cost P 225,000 Interest on time deposit 3,000 2,000 Mortgage assumed by the buyer with BPI 270,000 Short-term capital gain 290.500 10,000 Long-term capital gain 20.600 290,000 80,200 Installment Collection Schedule: Short-term capital loss 20,900 Long-term capital loss 80,400 2018 67,500 2019 67,500 How much is the taxable income of Jerry for 2020 45,000 year 2019? How much is the taxable income of Jerry for the year 2020? How much is the selling price? A resident corporation has the following data on income and expenses In 2020: Gross sales P 1,025.O00 Sales returns and allowances 10,000 Sales discounts 3,500 Interest incone on t ade notes receivable 15,000 Capital gain on asset helld for 2 years 50.000 Cost of sales 415.670 Operating expenses with vouchers and receipts…