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?

On January 1, 2021, Mama Company purchased a machine for P2,750,000. The machine was depreciated using the sum of years' digits method based on a useful life of 10 years with no residual value. On January 1, 2022, the entity changed to the straight line method of depreciation. The entity can justify the change. What is the depreciation for the machine on December 31, 2022? (A) 200,000 (B) 250,000 500,000 D) 750,000

The Jordan Corp (C Corporation), a calendar year taxpayer, sold a piece of equipment, a piece of machinery, and a warehouse on March 30, 2021. Data on these disposals are as follows: The equipment was purchased on February 20, 2016 for $50,000. It was sold for $60,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $45,538. The machinery was purchased on February 7, 2017 for $130,000. It was sold for $30,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $112,596. The building was purchased on March 1, 1991 for $2,000,000. It was sold for $1,325,000 cash. After calculating 2021 depreciation, accumulated depreciation totaled $1,589,743. The building had a mortgage with a balance of $200,000 that the buyer assumed from the Jordan Corp.   For each asset, Calculate the amount of the realized gain/loss Calculate the amount of the recognized gain/loss Calculate the amount and type of depreciation recapture, if any Calculate the…

On January 1, 2020, Diluc acquired land for a cost of P3,000,000 and a building costing P6,000,000.The building has a useful life of 6 years with no residual value. The land and building were properlyincluded under the caption of “Property Plant and Equipment”.On July 1, 2020 due to management decisions, the land and building qualified as “Held for sale” underIFRS 5 provisions on the same date the land had a fair value less cost to sell of P2,500,000, and thebuilding P5,300,000. The fair value less cost to sell of the land and building remained the same untilDecember 31, 2020.Requirements:1. What amount of assets must be presented in the December 31, 2020 financial statements fromthe foregoing events?2. What amount of depreciation expense was recorded in 2020?