Question

In 2020 a business purchased a building to be used in its manufacturing operations for $550,000....

In 2020 a business purchased a building to be used in its manufacturing operations for $550,000. The building was originally built two years earlier. What would be the undepreciated capital cost at the end of 2022?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer-

As Building was purchased on 2020 and that is the original cost for the owner, Hence that is the actual cost.And now it is asking for the undepriciated capital cost of the building at the end of 2022,means the cost without subtracting depreciation so value of building at the end of 2020 will remain same that is $550000.

Value of undepriciated capital cost of building at the end of 2022=Cost of the building=$550000.

Here Depreciation should be taken as nill as it is asking about undepriciated value of building.

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
XYZ, Inc. purchased an office building on October 1, 2020, that was put on the books...
XYZ, Inc. purchased an office building on October 1, 2020, that was put on the books at $800,000.  The building is expected to be used for 35 years and at the end of the 35 years will be sold for an estimated selling price of $100,000.  XYZ closes its books at the end of every calendar year.  XYZ, Inc. uses the straight-line method of depreciation.  Based on this information, which of the following is correct? On January 3, 2020, Serrato Corp. issued 40,000 shares...
In April 2020 a company purchased a new automobile for business use for $50,000. In October...
In April 2020 a company purchased a new automobile for business use for $50,000. In October 2020 the company purchased specialized computer equipment for $20.000. The company has a December 31 year-end. Ignoring sales and provincial taxes, what is the máximum allowable capital cost allowance that the company may claim in 2020?
The following information will be used for two questions on the exam: On January 1, 2020...
The following information will be used for two questions on the exam: On January 1, 2020 Navani Corp. decided to replace the HVAC system in its manufacturing plant because the old HVAC system was no longer adequate. The building was originally purchased for $5,000,000 on January 1, 2010 and has been depreciated using the straight-line method over an estimated 20-year life with zero estimated salvage value. The book value of the old HVAC system is unknown and the new HVAC...
On January 1, 2020 Navani Corp. decided to replace the HVAC system in its manufacturing plant...
On January 1, 2020 Navani Corp. decided to replace the HVAC system in its manufacturing plant because the old HVAC system was no longer adequate. The building was originally purchased for $5,000,000 on January 1, 2010 and has been depreciated using the straight-line method over an estimated 20-year life with zero estimated salvage value. The book value of the old HVAC system is unknown and the new HVAC system cost $500,000. It is estimated that the replacement of the HVAC...
June 30, 2020    A building that Big Company had purchased on January 1, 2016, for $...
June 30, 2020    A building that Big Company had purchased on January 1, 2016, for $ 10,000 was exchanged for another building owned by Other Company. Big Company exchanged its building and $1,000 cash for Other Company’s building. Big’s building had a fair value of $ 9,500 at the time of the exchange. Straight-line depreciation on the building with a 40-year useful life and no R.V. has been properly charged from Jan. 1, 2016 through Dec. 31, 2019. Both parcels...
On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process....
On January 2, 2018, the Jackson Company purchased equipment to be used in its manufacturing process. The equipment has an estimated life of eight years and an estimated residual value of $45,250. The expenditures made to acquire the asset were as follows: Purchase price $ 203,500 Freight charges 5,600 Installation charges 8,500 Jackson’s policy is to use the double-declining-balance (DDB) method of depreciation in the early years of the equipment’s life and then switch to straight line halfway through the...
Proctor Papers purchased a machine on January 1, 2020 at a cost of $380,000 with an...
Proctor Papers purchased a machine on January 1, 2020 at a cost of $380,000 with an estimated residual value of $30,000 at the end of its estimated useful life of 8 years. On January 1, 2020 Proctor Paper estimates that the machine only has a remaining life of 5 years and a residual value of $20,000. Proctor Paper uses straight-line depreciation. Depreciation expense for 2022 would be A - $48,500 B - $54,500 C - $57,000 D - $72,000
North Dakota Corporation began operations in January 2020 and purchased a machine for $16,000. North Dakota...
North Dakota Corporation began operations in January 2020 and purchased a machine for $16,000. North Dakota uses straight-line depreciation over a four-year period for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2020, 30% in 2021, and 20% in 2022. Pretax accounting income for 2020 was $146,000, which includes interest revenue of $18,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income....
Your employer is the owner of a building used for the manufacturing of light industrial equipment....
Your employer is the owner of a building used for the manufacturing of light industrial equipment. They would like you to make a first draft lease agreement between themselves and another business that would like to lease their building. After you make this first draft, it will be evaluated by outside legal counsel. Lease Details -The owner of the building is ABC Property Management -the lessor of the building will be XYZ Drone Manufacturing -the building is located at 2346...
(a) Nina, Inc. originally purchased a trade/business building several years ago for $750,000. The accumulated depreciation...
(a) Nina, Inc. originally purchased a trade/business building several years ago for $750,000. The accumulated depreciation (straight-line) on the building is $450,000. Nina, Inc. sells the building for $1,000,000. What is the gain on the sale and what type of gain is it? (b) Using the example above, assume Nina, Inc. is a sole proprietorship. What is the character of the recognized gain that Nina, Inc. reports on the sale of the trade/business building? What amount of tax will Nina,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT