White Oaks Properties builds strip shopping centers and small
malls. The company plans to replace its...
White Oaks Properties builds strip shopping centers and small
malls. The company plans to replace its refrigeration, cooking, and
HVAC equipment with newer models in one entire center built 8 years
ago. 8 years ago, the original purchase price of the equipment was
$750,000 and the operating cost has averaged $255,000 per year.
Determine the equivalent annual cost of the equipment if the
company can now sell it for $234,000. The company’s MARR is 23% per
year.
The equivalent annual...
Determine the cost of timber sold related to depletion for
2017.Martinez Company owns a 8,330-acre tract...
Determine the cost of timber sold related to depletion for
2017.Martinez Company owns a 8,330-acre tract of timber purchased
in 2003 at a cost of $1,547 per acre. At the time of purchase, the
land was estimated to have a value of $357 per acre without the
timber. Martinez Company has not logged this tract since it was
purchased. In 2017, Martinez had the timber cruised. The cruise
(appraiser) estimated that each acre contained 9,520 board feet of
timber. In...
1) Hazel purchased a used business asset (five-year property) on
March 10, 2017 at a cost...
1) Hazel purchased a used business asset (five-year property) on
March 10, 2017 at a cost of $80,000. She did not elect to expense
any of the assets under Section 179 or 1st year bonus
depreciation. Hazel sold the asset on January 20, 2019. Determine
the depreciation deduction for 2019.
2) Barry purchased a business asset (five-year property) on
November 30, 2018 at a cost of $100,000. This is the only asset he
purchased during the year. Barry did not...
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,...
Statement of Cost of Goods Manufactured for a Manufacturing
Company
Cost data for F. Mills Manufacturing...
Statement of Cost of Goods Manufactured for a Manufacturing
Company
Cost data for F. Mills Manufacturing Company for the month ended
May 31, 2014, are as follows:
Inventories
May
1
May
31
Materials
$177,000
$159,300
Work in process
116,820
105,140
Finished goods
93,810
106,730
Direct labor
$318,600
Materials purchased
during May
339,840
Factory overhead
incurred during May:
Indirect labor
33,980
Machinery depreciation
20,530
Heat, light, and power
7,080
Supplies
5,660
Property taxes
4,960
Miscellaneous costs
9,200
a. Prepare a cost...
At December 31, 2020, Sheffield Company reported the following
as plant assets.
Land
$ 4,110,000
Buildings...
At December 31, 2020, Sheffield Company reported the following
as plant assets.
Land
$ 4,110,000
Buildings
$28,650,000
Less: Accumulated depreciation—buildings
13,680,000
14,970,000
Equipment
47,920,000
Less: Accumulated depreciation—equipment
4,730,000
43,190,000
Total plant assets
$62,270,000
During 2021, the following selected cash transactions
occurred.
April 1
Purchased land for $2,150,000.
May 1
Sold equipment that cost $870,000 when purchased on January 1,
2017. The equipment was sold for $522,000.
June 1
Sold land purchased on June 1, 2011 for $1,420,000. The land
cost...
(A) Blue Company acquires a new machine (seven-year property) on
January 10, 2018, at a cost...
(A) Blue Company acquires a new machine (seven-year property) on
January 10, 2018, at a cost of $620,000. Blue makes the election to
expense the maximum amount under § 179, and wants to take any
additional first-year depreciation allowed. No election is made to
use the straight-line method. Determine the total deductions in
calculating taxable income related to the machine for 2018 assuming
Blue has taxable income of $800,000. (B) Susan purchased office
furniture on September 20, 2017, for $100,000....
QUESTION 1
Merle Company operates a skateboard repair shop near USC. Merle
purchased this business on...
QUESTION 1
Merle Company operates a skateboard repair shop near USC. Merle
purchased this business on January 1, Year 1, at a cost of $28,000.
[$ values in thousands for ease of expression.] This price included
the land, building and equipment. Merle started operations on
August 1, Year 1.
The cost basis of the land was properly determined to be
$12,000. The cost basis of the building and equipment were properly
determined to be $11,000 and $5,000, respectively. Merle properly...
QUESTION 3 Merle Company operates a skateboard repair shop near
USC. Merle purchased this business on...
QUESTION 3 Merle Company operates a skateboard repair shop near
USC. Merle purchased this business on January 1, Year 1, at a cost
of $28,000. [$ values in thousands for ease of expression.] This
price included the land, building and equipment. Merle started
operations on August 1, Year 1. The cost basis of the land was
properly determined to be $12,000. The cost basis of the building
and equipment were properly determined to be $11,000 and $5,000,
respectively. Merle properly...