4. On May 5, 2021, Christy purchased and placed in service a hotel. The hotel cost $10.8 million. Calculate Christy's cost recovery deductions for 2021 and for 2024.

H1. Account

Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Loss amounts should be indicated with a minus sign.)

Tiger Woods makes the following construction related expenditures: 450,000 on January 1 2021 300,000 on Oct 1 2021 600,000 on Dec 1 2021 500,000 on March 1, 2022 and construction ends June 30, 2022   He has a 600,000 construction loan at 6 percent. In addition, they have a 1,000,000 loan at 4 percent and a 3,000,000 loan at 5 percent. How much depreciation expense  does he recognize in 2022 if the company uses straight-line depreciation, begins depreciating as soon as construction is finished, and the building has 30 year useful life and a residual value of 200,000?

Miriam Corp. began leasing retail space at Oberlin Village in Raleigh, NC, on December 1, 2022. Before opening its new store, Miriam spent $7,000 on special lighting for the store. The lease term is ten (10) years, and the special lighting has an economic life of five (5) years. Which statement shows the correct accounting treatment for the new lighting in 2022? Miriam should debit its “Leasehold Improvements” account for $7,000 and depreciate the lighting over the lease term of ten (10) years. Miriam should debit its “Repairs and Maintenance Expense” account by $7,000. Miriam should debit its “Cost of Goods Sold” account by $7,000. Miriam should debit its “Leasehold Improvements” account for $7,000 but should not depreciate the lighting. Miriam should debit its “Leasehold Improvements” account for $7,000 and depreciate the lighting over its economic life of five (5) years.

Montgomery Industries spent $690,000 in 2023 on a construction project to build a library. Montgomery also capitalized $34,500 of interest on the project in 2023. Montgomery financed 100% of the construction with a 10% construction loan. The project was completed on September 30, 2024. Additional expenditures in 2024 were as follows: February 28 April 30 July 1 September 30 $ 98,100 188,100 44,100 72,100 Required: Determine the completed cost of the library. Note: Do not round intermediate calculations. Completed cost of the library

On April 1, 2021 Summer Time Pools agreed to install a pool for the Stafford family. Due to the popularity of pools Summer Time and the Stafford family agreed that the pool will not be installed until May 1, 2022.   The Stafford family paid Summer Time $40,000 on April 5, 202.  Interest on similar project is $2,400.  Will the interest be incorporated into the transaction price (yes/no) If the interest is incorporated into the price will the company recognize interest expense or interest income? What is the transaction price?

Aukey Smith contributed $1,000,000 to the local homeless shelter on November 1, 2025, stipulating that the contribution be used to purchase a building to provide additional beds for the homeless. The building was purchased at à cost of $1,200,000 on March 31, 2026, with $200,000 coming from surpluses in the general fund. The building has an estimated useful life of 15 years, with no residual value. The shelter capitalizes its capital assets and uses the straight line method to amortize its capital assets, pro-rating for the number of months owned in the years of acquisition and disposal. The shelter has a December 31 year end and uses the deferral method. What journal entry correctly accounts for the building and contribution revenue in the financial statements for the year ending December 31, 2026? 50,000 O Dr. Deferred contribution liability Cr. Contribution revenue Dr. Amortization expense Cr. Capital asset-accumulated amortization Dr. Deferred revenue Dr. Amortization expense Cr.…

Princess Town Insurance Inc., located in a country which has a capital gains tax, purchased a building in February 2018 for $26,000,000. In March 2019, they spent $1, 800,000 to install solar panels for electricity in the building. The building was sold for $39,000,000 in 2020. The annual maintenance cost was $500,000. The cost of advertising the sale of the building and the legal fees amounted to $1,950,000. Capital losses were as follows:2017 - $200,0002018 - $250,000 Required:Calculate the capital gains tax in 2020, assuming a capital gains tax of 20%

7. On January 1, 2020 Gingerbread, Corp. purchased a reindeer merry-go-round as an attraction to draw customers during the holiday season. The following information is available: Invoice price $280,000 Shipping cost $4,000 Set-up cost $2,000 Insurance to cover years 2020 and 2021 $12,000 Necessary repair during set-up 500   Determine the amount to be record as the capitalized cost of the asset.  a.286,000 b.280,000 c.286,500 d.298,500