Question

Blue Door Enterprises brought a machinery for $200,000. Blue Door paid $30,000 cash down payment along...

Blue Door Enterprises brought a machinery for $200,000. Blue Door paid $30,000 cash down payment along with a 5-year interest-bearing note for $170,000. What is the book basis and tax basis in the machinery.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
The Taylors have purchased a $200,000 house. They made an initial down payment of $30,000 and...
The Taylors have purchased a $200,000 house. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 7%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.) $ What is their equity (disregarding appreciation) after 5 years? After 10...
In January of the current year, Wanda transferred machinery worth $200,000 (basis of $30,000) to a...
In January of the current year, Wanda transferred machinery worth $200,000 (basis of $30,000) to a controlled corporation, Oriole, Inc., in a transfer that qualified under § 351. Wanda had deducted depreciation on the machinery in the amount of $165,000 when she held the machinery for use in her proprietorship. Later during the year, Oriole sells the machinery for $190,000. Answer the following questions regarding the tax consequences to Wanda and to Oriole on the sale of the machinery. a....
Person P got a house for $200,000 and made a $60,000 down payment. He obtained a...
Person P got a house for $200,000 and made a $60,000 down payment. He obtained a 30 - year loan for the remaining amount. Payments were made monthly. The nominal annual interest rate was 6%. After 10 years (120 payments) he sold the house and paid off the loan’s remaining balance. (a) What was his monthly loan payment? (b) What must he have paid (in addition to his regular 120th monthly payment) to pay off the loan?
TPW, a calendar year taxpayer, sold land with a $536,000 tax basis for $755,000 in February....
TPW, a calendar year taxpayer, sold land with a $536,000 tax basis for $755,000 in February. The purchaser paid $76,000 cash at closing and gave TPW an interest-bearing note for the $679,000 remaining price. In August, TPW received a $56,250 payment from the purchaser consisting of a $33,950 principal payment and a $22,300 interest payment. Assume that TPW uses the installment sale method of accounting. Compute the difference between TPW’s book and tax income resulting from the installment sale method.
The Taylors have purchased a $220,000 house. They made an initial down payment of $30,000 and...
The Taylors have purchased a $220,000 house. They made an initial down payment of $30,000 and secured a mortgage with interest charged at the rate of 6%/year on the unpaid balance. Interest computations are made at the end of each month. If the loan is to be amortized over 30 years, what monthly payment will the Taylors be required to make? (Round your answer to the nearest cent.) $1139.14 What is their equity (disregarding appreciation) after 5 years? After 10...
Should number 17 be recorded as a cash payment or exactly like number 18 in the...
Should number 17 be recorded as a cash payment or exactly like number 18 in the worksheet in interest payable? Assets Liabilities Equity Cash Flow Cash AR Allowance Inventory Prepaid Equip Acc. Dep. AP Unearn Rev Int. Pay Warranty Note Pay Bonds Stock R.E. Rev Exp 1. January 1, 2010 2. Sold $200,000 in stock 3. Paid $12,000 for 1 year of rent 4. Received $24,000 for services to be delivered over the coming 12 months 5. Purchased equipment -...
SuMar Company purchased a new piece of machinery by paying $2,000 down and agreeing to pay...
SuMar Company purchased a new piece of machinery by paying $2,000 down and agreeing to pay $1,000 at the end of each year for 5 years. The appropriate interest rate is 8%. Required: 1. What is the cost of the machinery? What is the present value of the liability at the time of the purchase? 2. Prepare the journal entry to record the purchase of the machinery and the associated liability on SuMar’s balance sheet. 3. Prepare a table that...
Ayer Self Storage purchased​ land, paying $ 190,000 cash as a down payment and signing a...
Ayer Self Storage purchased​ land, paying $ 190,000 cash as a down payment and signing a $ 150,000 note payable for the balance. Ayer also had to pay delinquent property tax of $ 2,500​, title insurance costing $ 1,500​, and $ 5 ,000 to level the land and remove an unwanted building. The company paid $ 57,000 to add soil for the foundation and then constructed an office building at a cost of $ 550,000. It also paid $ 51,000...
TPW, a calendar year taxpayer, sold land with a $578,000 tax basis for $865,000 in February....
TPW, a calendar year taxpayer, sold land with a $578,000 tax basis for $865,000 in February. The purchaser paid $86,500 cash at closing and gave TPW an interest-bearing note for the $778,500 remaining price. In August, TPW received a $62,325 payment from the purchaser consisting of a $38,925 principal payment and a $23,400 interest payment. In the first year after the year of sale, TPW received payments totaling $119,650 from the purchaser. The total consisted of $77,850 principal payments and...
Anna has $18,000 to invest. She requires $30,000 for a down payment for a house. If...
Anna has $18,000 to invest. She requires $30,000 for a down payment for a house. If she is able to invest at 6%, how many years (the nearest year) will it be before she will accumulate the desired balance? 6 years. 7 years. 8 years. 9 years Ziggy is considering purchasing a new car. The cash purchase price for the car is $43,100. What is the annual interest rate (the nearest percent) if Ziggy is required to make annual payments...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT