Question

A 40 acre lot was purchased for 5,947,639. A building 664,862 was built on the land....

A 40 acre lot was purchased for 5,947,639. A building 664,862 was built on the land. The building is placed into service in May. Find the MACRS depreciation charge for year 1. (Take recovery rate as 1.605% for the first year)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution:

MACRS depreciation charge for year 1 = $ 10,671.04

Working:

Year Building Price Macrs Rate Mid Month Convention( May Month, 1st Year)(b) Depreciation Expense(a*b) Calculation
1 $                         664,862 1.6050% $               10,671.04 $664,862*1.605%
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Andrew purchased a factory building sitting on 3 acres of land on April 15, 1993, for...
Andrew purchased a factory building sitting on 3 acres of land on April 15, 1993, for $5,000,000. Land in the vicinity of the factory building was selling for $100,000 per acre in 1993. ANDREW elected to use MACRS depreciation (same MACRS rate table as applicable in 2018), and made no election to use §179 or additional first year depreciation in 1993. He sells the factory building on February 2, 2018.Determine Andrew’s depreciation deduction on this building for 2018.
On July 18 of year 1 Javier purchased a building, including the land it was on,...
On July 18 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,595,500; $463,000 was allocated to the basis of the land and the remaining $1,132,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) a. Using MACRS,...
On December 15 of year 1 Javier purchased a building, including the land it was on,...
On December 15 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,432,000; $317,000 was allocated to the basis of the land and the remaining $1,115,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) b. What would...
SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building...
SportsWorld purchased property for $100,000. The property included a building, parking lot, and land. The building was appraised at $65,000; the land at $40,000; and the parking lot at $10,000. To the nearest dollar, the value of the land to be recorded in the books should be: $40,000. $34,783. $36,364. $48,696. $56,522.
On May 20 of year 1 Javier purchased a building, including the land it was on,...
On May 20 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,337,000; $392,000 was allocated to the basis of the land and the remaining $945,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) b. What would...
On May 12 of year 1 Javier purchased a building, including the land it was on,...
On May 12 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,495,000; $450,000 was allocated to the basis of the land and the remaining $1,045,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) b. What would...
On May 15 of year 1 Javier purchased a building, including the land it was on,...
On May 15 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,344,000; $364,000 was allocated to the basis of the land and the remaining $980,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Problem 10-51 Part-b b....
Tiger Industrial Inc. purchased a 20 acre tract of land and two buildings (building #1 and...
Tiger Industrial Inc. purchased a 20 acre tract of land and two buildings (building #1 and building #2) for $1,000,000. The market value of the land is $700,000 and the market value of building #1 is $350,000. Building #2 was condemned and had no market value. The company plans to raze Building #2 and construct a new building (Building #3) on the site. In addition to the purchase price, the company made (received) the following expenditures (income) in the fiscal...
A company purchased a 3-acre tract of land for a building site for $440,000. The company...
A company purchased a 3-acre tract of land for a building site for $440,000. The company demolished the old building at a cost of $21,000, but was able to sell scrap from the building for $2400. The cost of title transfer was $1350 and attorney fees for reviewing the contract was $680. Property taxes paid were $7500, of which $700 covered the period after the purchase date. The capitalized cost of the land is: $469,180. $468,930. $467,430. $333,930.
On January 16 of year 1 Javier purchased a building, including the land it was on,...
On January 16 of year 1 Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,346,000; $386,000 was allocated to the basis of the land and the remaining $960,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4and Table 5.) (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) a. Using MACRS, what...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT