Phil Coulson purchased a hotel building on October 11, 2022, for $3,000,000. Determine the cost recovery deduction for 2023. a. $48,150 b. $59,520 C. $69,000 d. $76,920
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- Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the purchase of the printer impacts not only depreciation expense each year but also the assets book value. What amount will be recorded as depreciation expense each year, and what will the book value be at the end of each year after depreciation is recorded?8. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. The complex was sold in December of 2018 for $750,000. What is the depreciation deduction for the last year? a. $26,133.75 b. $34,845 $27,270 c. $36,3607. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. You were able to start renting units in July of 2010. The complex was sold in December of 2019 for $750,000. What is the depreciation deduction for the first year? b. $36,370 d. None of these a $19,700 C. $16,670
- A. ACQUISITION COSTS Mr. Ardi acquired land at a cost of Rp4.200.000.000 on April 1, 2019. In addition to this cost, he had to pay the following expenses: a. Commission fee, 2% from the land price, Rp84,000,000 b. Land acquisition tax Rp12,000,000 c. Removal cost of old (unused) building Rp20.500.000. Mr. Ardi received Rp17.000.000 from the sales of salvage materials. d. Rpl10.000.000 to build a fence e. Rp215.000.000 to build a parking lot Instructions: Prepare the journal entries for the above transaction! (4%)9. Amazing Inc. purchased Class 8 furniture for $4,000 in 2022. In 2023, this furniture was sold for $1,000. Class 8 UCC was $10,300 at the beginning of 2022 and no Class 8 property was purchased during the year. What is the UCC of this class at the end of 2023? A. $1,860 B. $7,440 C. $9,300 D. $8,240 10. Mary carries on business as a sole proprietor that generated $100,000 in net accounting income. Included in this amount are: • $7,000 of amortization expense; •$4,000 for bad debt expense; • $112,000 cost of goods sold; and • $12,000 meals and entertainment with clients. Mary's maximum CCA has been calculated at $10,000 for the year. What is Mary's business income for income tax purposes? A. $113,000 B. $109,000 A) C. $107,000 $103,000 11. Tomas began carrying on a home-based business as a sole proprietor on January 1, 2023. In 2023, he received $40,000 cash for services rendered and paid $33,000 in business expenses. On December 31, 2023 there was an outstanding accounts receivable…Bhaskar purchased a new factory building and land on September 10, 2021, for $3,700,000. ($500,000 of the purchase price was allocated to the land.) He elected the alternative depreciation system (ADS). Determine the cost recovery deduction for 2022. O $80,000 Ob. $82,048 O $21,328 Od $92,500
- Use the following information to answer the "fill in the blanks" question: Jimmy Fallon acquired 3 rental properties in 2020 as follows: Building $40,000 42,000 70,000 Land Property 1 Property 2 Property 3 $10,000 12,000 30,000 Total $ 50,000 54,000 100,000 In 2020, the rent revenue before expenses for all three properties was $42,000. The expenses, not including CCA, for all three properties were $32,000 (property taxes, insurance, interest and maintenance). What is the minimum amount of net rental income to be reported in 2020? A What is the UCC balance for each class of rental properties at December 31, 2020? A What is the maximum amount of CCA that can be deducted in 2020 if the net rental income before CCA was $7,000?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 2024.197 intangibles: Oa. Include intangible assets created and not purchased by the taxpayer Ob. Are amortized based on current fair market value rather than their actual cost. Oc. Must be amortized over a 15 year life, regardless of their actual life. а. Od. Do not include purchased goodwill or going-concern value.
- Arlington LLC purchased an automobile for $76,000 on July 5, 2021. What is Arlington's depreciation deduction for 2021 if its business-use percentage is 76 percent? (lgnore any possible bonus depreciation.) (Use Exhibit 10-10.) Multiple Choice $5,825 $7,600 $7,676 $11,400 None of the choices are correct.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.298,50017. MACRS and Averaging Conventions. (Obj. 1) Jan purchased the following properties during 2020. dr Description New Computer Used Machinery Used Office building 00 New Equipment Date Placed in Service March 9, 2020 July 17, 2020 September 6, 2020 hs bn 000.0 Cost $ 6,000 70,000 270,000 84,000 December 27, 2020 Compute Jan's depreciation for each of these properties for 2020 and 2021. Assume that Jan elected to expense 50% of the cost of each item of qualified property and elected out of bonus depreciation. The machine and equipment are 7-year property.