Question

Given the following information, calculate the annual depreciation for year 1. The original cost basis is...

  1. Given the following information, calculate the annual depreciation for year 1. The original cost basis is $1,156,000 on your purchase of office building. The percent allocated to land is 20%. Personal property is $100,000. Cost Recovery Period is 27 years for Residential and 39 years for Commercial.

    $30,720

    $21,662

    $21,149

    $27,084
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Particulars Basis × rate Depreciation
Land $        231,200 0
Personal property $        100,000 0 $                -  
Balance warehouse $        824,800 0.025641 $ 21,148.72
$ 21,148.72

Personal property portion and land depreciation not allowed.

Answer is $21,149

please rate.

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
You purchased a property three years ago with an original cost basis of $2.2 million. You...
You purchased a property three years ago with an original cost basis of $2.2 million. You determine that the land was worth $75,000 and the building could be depreciated over 39 years (use 1/39 per year). You plan to hold this property five more years and then sell it. What is your total capital gain and capital gain tax if your property is sold for $2,439,000 after holding for 5 years? Capital gains from price appreciation will be taxed at...
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...
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,...
1.. Kishan exchanged office building for land. Building orginal cost 45000 and adjusted value 20000. Land...
1.. Kishan exchanged office building for land. Building orginal cost 45000 and adjusted value 20000. Land had fair market value of 40000 and also Kishan gave 4000 in transaction. What is the basis of land after exchange? 2. Asha purchased super computer for 3,000,000 (5 Year property) on sept 27. with MACRS Section 1, what Asha's maximum cost recovery for this year? 3. This year Mike sold business equipment for 100,000. Mike bought that twp years ago for 90000 and...
2019 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2019, Holly purchased a...
2019 Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) On March 8, 2019, Holly purchased a residential apartment building. The cost basis assigned to the building is $700,000. Holly also owns another residential apartment building that she purchased on October 15, 2019, with a cost basis of $400,000. Please access the depreciation tables. a. Calculate Holly's total depreciation deduction for the apartments for 2019 using MACRS. $ ________ Feedback MACRS allows taxpayers who invest in capital assets to write off...
At the beginning of the year, Dee began a calendar-year business and placed in service the...
At the beginning of the year, Dee began a calendar-year business and placed in service the following assets during the year: Asset Date Acquired Cost Basis Computer equipment (5 year) 3/23 $5,000 Furniture (7 year) 5/12 $7,000 Pickup truck (5 year) 11/15 $10,000 Commercial building (39 year) 10/11 $270,000 Assuming Dee does not elect §179 expensing or bonus depreciation, determine Dee’s year 1 cost recovery for each asset. [Hint: (1) Commercial building is a nonresidential real property with 39 years...
Dain’s Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Basis Drill...
Dain’s Diamond Bit Drilling purchased the following assets this year. Purchase Original Asset Date Basis Drill bits (5-year) Feb-20 $ 115,000 Drill bits (5-year) Aug-20 118,500 Commercial building May-15 299,000 Assume its taxable income for the year was $76,500 for purposes of computing the §179 expense (assume no bonus depreciation). (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Leave no answer blank. Enter zero if applicable.) c. If the February drill bits’ original basis was...
[The following information applies to the questions displayed below.] Julia purchased a warehouse building, including the...
[The following information applies to the questions displayed below.] Julia purchased a warehouse building, including the land it was on, for use in her business. The total cost of the purchase was $1,399,500; $322,000 was allocated to the basis of the land and the remaining $1,077,500 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 answers to the nearest whole dollar...
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 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