Problem 14-77 (LO. 8, 9, 10) Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss? If an amount is zero, enter "0". a. Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of $40,000. Larry has additional parking across the street and plans to use the condemnation proceeds to build his inventory. There is a of $ that is treated as b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was zero. There is a of $ that is treated as c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated. There is a of $ that is treated as

Problem 14-77 (LO. 8, 9, 10) Larry is the sole proprietor of a trampoline shop. During 2020, the following transactions occurred. For each transaction, what are the amount and nature of recognized gain or loss? If an amount is zero, enter "0". a. Unimproved land adjacent to the store was condemned by the city on February 1. The condemnation proceeds were $15,000. The land, acquired in 1987, had an allocable basis of $40,000. Larry has additional parking across the street and plans to use the condemnation proceeds to build his inventory. There is a of $ that is treated as b. A truck used to deliver trampolines was sold on January 2, 2020 for $3,500. The truck was purchased on January 2, 2016, for $6,000. On the date of sale, the adjusted basis was zero. There is a of $ that is treated as c. Larry sold an antique rowing machine at an auction. Net proceeds were $4,900. The rowing machine was purchased as used equipment 17 years ago for $5,200 and is fully depreciated. There is a of $ that is treated as

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1) Kristine sold one asset on March 20th of 2023. It was a computer with an original basis of $10,000, purchased in May of 2021 and depreciated under the half-year convention. What is Kristine's depreciation deduction for 2023? Note: Round final answer to the nearest whole number. Blank] Blank 1 Add your answer
On February 8, 2020, Holly purchased a residential apartment building. The cost basis assigned to the building is $209,000. Holly also owns another residential apartment building that she purchased on July 15, 2020, with a cost basis of $384,200. a. Calculate Holly's total depreciation deduction for the apartments for 2020 using MACRS.
Allie purchased an office building on October 23, 2018 for $150,000. She uses this building in her business. What is the amount of depreciation on this asset for 2021? $5.454 O $8,025 O $1,137 O $3,846 O $803
Please dont provide solution image based thanks
None
dan purchased machinery (7 yr. property) to use in her business on 9/1/18 at a cost of $ 40,000. This was the only property placed in service in 2018. On 3/1/20 dan sold this equipment for $ 44,000. Answer each part below as follows: How much depreciation (use MACRS 200DB method) will Gabby claim in the following years? 2018 2019
5
Da
M103.
Problem 7-34 (LO. 3, 4) Heather owns a two-story building. The building is used 40% for business use and 60% for personal use. During 2020, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $100,000 on the business portion. At the time of the fire, the building had a fair market value of $900,000. Immediately after the fire, the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed. If an amount is zero, enter "0". a. Determine the business and personal gain or loss in regard to the building and its contents. Business Personal Total…
dvuben
None