ARE REQUIRED to determine the base cost of the asset. Select one: a. R3 440 000 b. R4 820 000 c. R4 440 000 d. R 3 820 000
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- Sebastian purchases two pieces of equipment for $100,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $72,000 and that of the second piece of equipment is $108,000. What is Sebastian's basis in these two assets? Do not round your interim calculations. If required, round your final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is $____ and $_______ for the second piece of equipment.Chris purchased a new John Deere tractor for his farming business on 15 May 2018. He paid $45 000 cash for the tractor because he traded in an old tractor and was allowed $25 000 against the price of the new tractor. If he did not have the old tractor to trade-in the new John Deere would have cost $70 000. He expects that the tractor will be useful for 8 years and he wishes to depreciate the tractor using the diminishing value method. What amount can Chris claim as a deduction (to the nearest $) for the year ended 30 June 2020? Hint - you must first calculate depreciation for the 2018- & 2019-income years. Select one: 1.$2205. 2.$16 949. 3.$12 702. 4.$6129. 5.$9534Brian acquired a rental house in 2004 for a cost of $80,000. Straight-line depreciation on the property of $26,000 has been claimed by Brian. In January 2020, he sells the property for $120,000, receiving $20,000 cash on March 1 and the buyer's note for $100,000 at 10 percent interest. The note is payable at $10,000 per year for 10 years, with the first payment to be received 1 year after the date of sale. Calculate his taxable gain under the installment method for the year of sale of the rental house. In your computations, round any division to two decimal places. Gain reportable in 2020 is $fill in the blank 1.
- Bart's investment property was condemned. His basis in the property was $100000. He received a net award of $120,000. Later that same year, he purchased a replacement property for $150,000. What is the amount of gain recognized after the replacement property is purchased?On April 1st, Leo paid $310,000 for a residential rental property. The purchase price represents $250,000 for the building and $60,000 for the land. Five years later, on November 1st, he sold the property for $400,000. Compute the MACRS depreciation for each of the five calendar years during which he had the property. It is a 27.5 year MACRS property Please need fast answer without plagiarismBrian acquired a rental house in 2003 for a cost of $80,000. Straight-line depreciation on the property of $26,000 has been claimed by Brian. In January 2019, he sells the property for $120,000, receiving $20,000 cash on March 1 and the buyer's note for $100,000 at 10 percent interest. The note is payable at $10,000 per year for 10 years, with the first payment to be received 1 year after the date of sale. Calculate his taxable gain under the installment method for the year of sale of the rental house. In your computations, round any division to two decimal places. Gain reportable in 2019 is $.
- John purchased an office building in 2010 for $450,000. In 2020 he sells the building for $950.000. John's remaining mortgage on the building was $150,000. The buyer paid $650,000 and assumed the remainig debt on the building. John had taken $100,000 depreciation on the building. Calculate: a Adjusted basis in the building b Any realized gain or loss on the buildingReva originally sold her principal residence in an installment sale for 150000. Her adjusted basis in the home was 110000. at that time. Three years later, she repossessed the home from the buyer whan the balance of the note was 135000. She resold it within one year for 160000. Original sale expenseses were 3750, and resale expenses were 4000. Repossession cost were 3800. She incurred 3200 for improvements prior to the resale. What is Reva's basis in the repossessed propertyMr Winston entered into an agreement that gave him the right to purchase stationery for R12 000. This stationery normally costs R17 000. Mr Winston has not exercised the option by the end of the year of assessment. Mr Winston will not be able to deduct this amount under the general deduction formula as it was of a capital nature True or False
- In 2018, José purchased a house for $197,400. He used the house as his personal residence. In September 2021, when the fair market value of the house was $315,700, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ b. Under MACRS, the cost recovery period for residential rental real estate is convention. c. The cost recovery for 2021 is $ years, and it is subject to theDorothea originally sold her home for 92000. At that time her adjusted basis in the home was 95000. Five years later she repossessed the home when the balance of the note was 87000. She resold it within on year for 100000. Original sale expenseses were 1150 and resale expenses were 1350. Repossession costs were 2900. She incurred 1100. for improvements prior to the resale. What is Dorothea's recomputed gainAfter 3 years, Ka Leony sold a painting (capital asset) which he purchased in 2018 at a cost of P3,000, on the following terms:June 1, 2021 downpayment 1,000August 1, 2021 installment due 1,000October 1, 2021 installment due 2,000October 1, 2022 installment due 4,000October 1, 2023 installment due 4,000How much gain should he report as part of gross income?