Kip purchased a rental house for $250,000 which included the land portion of $50,000. At closing, he paid $3,500 for legal fees and $4,000 in title fees. What is the amount of basis of the house for depreciation purposes? 1. $200,000 2. $206,000 3. $207,500 4. $257,500
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Kip purchased a rental house for $250,000 which included the land portion of $50,000. At closing, he paid $3,500 for legal fees and $4,000 in title fees. What is the amount of basis of the house for
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- Jane purchased an office building for the total acquisition price of $1,000,000.00. The value of the land was $250,000.00. The value of the personal property was $100,000.00. The value of the mortgage was $500,000.00. The value of the leasehold was $850,000.00. What is her depreciable basis for the real estate? Please don't provide solution in an image format thankuOn August 15, 2021, Bob bought a rental house. The property cost $310,000. Of this, the land was valued at $150,000 and the remaining $160,000 represents the house value. Determine the maximum depreciation that Bob can claim in 2021 using the proper MACRS method. $2,667.20 $2,182.40 $1,697.60 $4,228.40 $2,046.00Jake parchased a $235,000 crane for his constraction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume take is : On what from would the gain or loss originally he reported?
- Blossom Company purchases land for $180000 cash. Blossom assumes $5900 in property taxes due on the land. The title and attorney fees totaled $1900. Blossom has the land graded for $4200. They paid $25000 for paving of a parking lot. What amount does Blossomrecord as the cost for the land?On October 1, you purchased a residential home in which lo locale your professional office for $180,000. The appraisal is divided into $30,000 for the land and $150,000 for the building.(a) In your first year of ownership, how much can you deduct for depreciationfor tax purposes?(b) Suppose that you sold the property at $197,000 at the end of the fourth year of ownership. What is the book value of the property?Jake parchased a $235,000 crane for his constraction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume take is What is the amount of gain or loss on the sale?
- Kwan acquired a warehouse for business purposes on August 30, 2002. The building cost $550,000. Kwan took $291,500 of depreciation on the building, and then sold it for $680,000 on July 1, 2022. Required: What is the adjusted basis for the warehouse? What amount of the gain or loss is realized on the sale of the warehouse? What amount of the gain or loss is unrecaptured? At what rate is the unrecaptured gain or loss taxed? What amount of the gain or loss qualifies as a § 1231 gain or loss?Gaston owns equipment that cost $32,000 with accumulated depreciation of $22,400. Gaston sells the equipment for $8,600. Which of the following would not be part of the journal entry to record the disposal of the equipment?Gaston owns equipment that cost $27,500 with accumulated depreciation of $22,000. Gaston sells the equipment for $5,000. Which of the following would not be part of the journal entry to record the disposal of the equipment? Multiple Choice Debit Accumulated Depreciation $22,000. Credit Equipment $27,500. Debit Loss on Disposal of Equipment $500. Credit Gain on Disposal of Equipment $500. Debit Cash $5,000.
- Terry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $4,500. Terry owes $5,000 to the Seller. What is Terry’s adjusted basis in the machine? Group of answer choicesTerry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $4,500. Terry owes $5,000 to the Seller. What is Terry’s adjusted basis in the machine? $10,500 $8,000 $13,000 $5,500Sandhill Co. purchases land for $130000 cash. Sandhill assumes $5600 in property taxes due on the land. The title and attorney fees totaled $2700. Sandhill has the land graded for $4400. They paid $21000 for paving of a parking lot. What amount does Sandhill record as the cost for the land?