Question 3   Mrs. A. spent $25,000 during Year 2 and $35,000 during Year 3 on “research and experimentation” activities described in Section 174 of the Code.  She had never heard of section 174, however, so she capitalized these amounts into an asset she characterized as “Research and Development.” She spent another $50,000 on these activities in Year 4 but, before she filed her return for Year 4, she became aware of Section 174.  By the end of Year 4, she was almost ready to declare her research complete and undertake to patent and exploit the results. What amount(s) should Mrs. A report in Year 4 with respect to her research and development activities?      My professory came up with $0 for each year. I am not sure why.

This year, Amy purchased $2,780 of equipment for use in her business. However, the machine was damaged in a traffic accident while Amy was transporting the equipment to her business. Note that because Amy did not place the equipment into service during the year, she does not claim any depreciation or cost recovery expense for the equipment. Problem 9-57 Part-b (Algo)b. Suppose that after the accident, Amy repaired the equipment for $3,890. What amount can Amy deduct for the loss of the equipment?             c. Suppose that after the accident, Amy could not replace the equipment so she had the equipment repaired for $3,800. What amount can Amy deduct for the loss of the equipment?

None

Please show the works

4 0 Frankie purchased a freehold townhouse which she used to generate rental income. She originally acquired the unit at cost of $350,000. Over the years, she had claimed $27,000 in CCA, such that her UCC at the beginning of the year was $323,000. This year, she sold the unit for $325,000. She incurred selling expenses of $5,000. Frankie purchased another rental property before the end of the year for $225,000. What statement is true? Oa) Frankie has neither a recapture, nor a terminal loss. Ob) Frankie has a terminal loss of $3,000. Oc) Frankie has a recapture of $25,000. O d) Frankie has a terminal loss of $5,000.

2 nts BHL owns only one asset-the warehouse building and related land that is rented by Quantro for $39,600 per year. The property was originally owned by Quantro but was sold to BHL several years ago as a means to reduce the risk exposure of this appreciating asset. On December 31, 2023 (the year-end of both companies), BHL sold the warehouse property to a third party for $407,000 (land $44,000, building $363,000). The property originally cost $352,000 (land $27.500, building $324,500). The undepreciated capital cost of the building at December 31, 2022, was $279,400. One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $528,000. (land $55,000, building $473,000.). Required: Determine BHL's net income for tax purposes for 2023, B Answer is not complete. Rent CCA on new warehouse Recapture of CCA Property Income Building Taxable capital gains Land: Taxable capital gains Taxable Capital Gains $ 0 S 0 Net Income for Tax purposes Prev 2…

Based on Ontario tax laws

am.112.

Please explain

Bill received $100,000 in insurance proceeds to compensate him 3budiness equipment destroyed by a fire. The adjusted basis of the equipment was $80,000. Bill reinvested $95,000 of the insurance proceeds in replacement business equipment within the time allowed. He wants to defer gain to the maximum extent allowed. Bill must recognize how much gain? A. 2,500 B. 5,000 C. 25,000 D. 450,000