A) Alice will recognize a 10k gain, the amount by which the 60k mortgage assumed by bear exceeds the 50k basis of all assets transferred by…
Note: (1) The building is subject to a nonrecourse liability of $10,000, which is assumed by the partnership.…
Conclusions: Alice transferred in building and land with a mortgage liability and received 400 shares of common stock. Alice however will recognize a gain of $10,000 the basis of the building and land is 0 (100,000 minus the mortgage of 60,000 plus the gain of 10,000).…
If Diane incurs $400,000 for the rehabilitation project, a substantial rehabilitation would result. Therefore, the rehabilitation tax credit available to Diane would be $80,000 ($400,000 X 20%). The depreciable basis of the property, which would be reduced by the full amount of the credit, would be $570,000 [$250,000 (original cost) + $400,000 (capital improvements) - $80,000 (amount of credit)].…
Charlie Chubbs contributed an item of inventory from his sole proprietorship to a public charity for its use. The fair market value of the asset was $800 and his basis was $600.…
40. [LO 1] Emily purchased a building to store inventory for her business. The purchase price was $760,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $10,000 to repair the roof, $5,000 to make the interior suitable for her finished goods, and $300 in legal fees. What is Emily’s cost basis in the new building?…
1. Is Mr. B. Potato entitled to a charitable contribution deduction for the donation of his property to the Troy Fire Department to conduct training exercises on the land that include burning the house down to cinders?…
2) In 2013, Firm A paid $50,000 cash to purchase a tangible business asset. In 2013 and 2014, it deducted $3,140 and $7,200 depreciation with respect to the asset. Firm A’s marginal tax rate in both years was 35 percent. Compute Firm A’s adjusted basis in the asset at the end of each year. (part b)…
6. A student pushes a 0.5 kg mass along a horizontal ramp according to the F-d graph shown below. a) How much work did the student do on the mass? b) What speed did the mass leave the…
3) During 2010, Sigma Company earned service revenues amounting to $700,000, of which $630,000 was collected in cash; the balance will be collected in January 2011. What amount should the 2010 income statement report for service revenues?…
(TCO D) A residence in Brevard County has an assessed value of $150,000. Its owner qualifies for an old age exemption of $10,000 and a homestead exemption of $20,000. The property tax rate is $5 per $100 AV. What will be the property tax bill on this property?…
2. explain that a change in gravitational potential energy is related to work done In order to a change in an object's gravitational potential energy in a gravitational field, work must be done to achieve this. I.e. To be able to move an object within a gravitational field, work must be exerted on the object in order to make it move. Work must be done in order to transform the energy of an object into a different entity so that is can move. In this case, from gravitational potential energy to kinetic energy.…
Work done is the measure of how much energy was used to displace an object a specified distance. W=fs where s is displacement. When an object is moved away form a gravitational field, it gains energy. This is because by raising it up from the field’s origin, work is done.…
Question 1 (25 marks) On the 1 July 20X6 Howard Ltd gained control of Carter Ltd by buying 70% of its shares for $70,000. At this date, Carter had share capital $50,000 and retained profits $30,000. Additional information: Goodwill impairment is $500 in year ended 20X8 and $850 in 20X9. Dividends are paid out of current period profit. The dividends were paid before year-end. Inventory purchases by Howard from Carter during the current year amounted to $30,000. Their cost to Carter was $20,000. Howard still holds $18,000 of this inventory at year-end. Loan from Carter attracts 12% interest per annum. The interest was paid before year-end. Included in other assets of Howard is equipment purchased from Carter on the 1 July 20X7 for $41,000. The equipment was four years old when sold, had cost Carter $50,000 to buy, with expected residual value $5,000, and had been depreciated 10% p.a. straight-line. Howard depreciates the equipment (after deducting the same residual) straight-line over the remaining six-year life.…
9. How does a property’s “assessed value” (for the purposes of taxation) differ from a property’s actual value?…