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.
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- K During 2021, Ming's Book Store paid $486,000 for land and built a store in Naperville, Illinois. Prior to construction, the city of Naperville charged Ming's $1,000 for a building permit, which Ming's paid. Ming's also paid $15,000 for architect's fees. The construction cost of $670,000 was financed by a long-term note payable, with interest costs of $28,020 paid at the completion of the project. The building was completed June 30, 2021. Ming's depreciates the building using the straight-line method over 35 years, with estimated residual value of $330,000. Read the requirements. c. Joumalize depreciation on the building for 2021. Journal Entry Date Accounts Depreciation Expense-Building Accumulated Depreciation Building Balance Sheet Plant assets: Debit Less: 5,486 Credit 5,486 Requirement 2. Report Ming's plant assets on the company's balance sheet at December 31, 2021. *** Check answer ot MO ot MO ot MO ot MOOn 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. $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 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 March 15, 2020, with a cost basis of $157,500. 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.Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as residential rental real estate. _______ b. Calculate Lopez's cost recovery deduction for 2019 if the building is classified as nonresidential real estate._______Juan purchased an apartment building on November 16, 2021, for $10,000,000. An appraisal indicated that 40% of the cost was attributed to the land, 30% to personalty, and the remainder to the building. Determine the MAXIMUM TOTAL (all assets) cost recovery for 2021.
- The home was acquired for $83,000 in 2005. On May 12, 2021, the Arcs installed new fixtures (7-year recovery period) at a cost of $3,400. They wish to maximize the cost recovery on the new fixtures but make no elections. how do I calculate Special depreciation allowance for qualified property Rental income Insurance Interest expense Property taxes Miscellaneous expenses $16,100 800 5,750 1,200 500On June 1, 2020, Irene places in service a new automobile that cost $45,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car). She does not take additional first-year depreciation but instead uses the 5-year (200% DB). Determine the cost recovery deduction for 2020 and 2021.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.LO.2 On May 5, 2019, Christy purchased and placed in service a hotel. The hotel cost 10.8 million, and the land cost 1.2 million (12 million in total). Calculate Christys cost recovery deductions for 2019 and for 2029.3. Orange Corporation acquired new office furniture on August 15, 2021, for $2,700,000. Orange elects immediate expensing under $ 179. Orange does not claim any available additional first- year depreciation. Orange's taxable income is 1,000,000. Determine Orange's cost recovery for 2021. 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. | 5. On October 15, 2021, Jon purchased and placed in service a used car. The purchase price was $50,000. This was the only business use asset Jon acquired in 2021. He used the car 80% of the time for business and 20% for personal use. Jon used the MACRS statutory percentage method. Calculate the total deduction Jon may take for 2021with respect to the car. (ignore 179 and bonus)
