Don't give answer in image Student quest1. Privett, Inc. purchased land in 2019. An existing structure was demolished, and a new warehouse was constructed on the property in September of 2019. Privett hiredconstruction workers at a rate of $25 per hour to do the work (1,680 hours in total). Privett's operations manager spent 25% of his time in September supervising theconstruction.Warehouse Construction Cost DataPurchase price - Land$125,000Operation manager's monthly salary 5,000Paving of parking lot10,000Foundation workParking lot lightingElectrical/Plumbing contractorsHourly wage rate - WorkersPayroll tax rate (all employees)Privett had an appraisal done in October 2019. The land and land improvements were appraised for $150,000 and $50,000, respectively; the building was appraised for$175,000.What is the cost of the warehouse project recorded on the books?15,00010,00025,00025Cost to remove structure on land$10,000Proceeds from sale of metal from demolished structure 3,000Landscaping costsDirect materials - WarehouseClosing costs on land purchase12,000105,0005,00010%s

Land has been excluded due to it shown seprately and Land is not depreciable. Other cost will not be…

Warehouse Construction Cost Data Purchase price - Land $125,000 Operation manager's monthly salary 5,000 Paving of parking lot 10,000 Foundation work 15,000 Parking lot lighting 10,000 Cost to remove structure on land $10,000 Proceeds from sale of metal from demolished structure 3,000 Landscaping costs Direct materials - Warehouse Closing costs on land purchase 12,000 105,000 5,000

Warehouse Construction Cost Data Purchase price - Land $125,000 Operation manager's monthly salary 5,000 Paving of parking lot 10,000 Foundation work 15,000 Parking lot lighting 10,000 Cost to remove structure on land $10,000 Proceeds from sale of metal from demolished structure 3,000 Landscaping costs Direct materials - Warehouse Closing costs on land purchase 12,000 105,000 5,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 11P

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