Erika Corporation sold an office building that it used in its business for $600,000. Erika bought the building ten years ago for $400,000 and has claimed $100,000 of depreciation expense. What is the amount and character of Erika’s gain or loss?
book value of the building on the date of sale = purchase cost - depreciation claimed
= $400000-$100000
therefore book value of building = $300000
sale value of the building = $600000
loss/ gain of Erika corporation = sale value - book value
= $600000- $300000
gain on sale of building = $300000.
Erika Corporation sold an office building that it used in its business for $600,000. Erika bought...
Bateman corporation sold an office building that it used in its business for $800,150. Bateman bought the building ten years ago for $599,925 and has claimed $200,225 of depreciation expense. what is the amount and character of bateman gain or loss? $40,045 ordinary and $360,405 1231 gain $200,225 ordinary and $200,225 1231gain $400,450 ordinary gain $400,450 capital gain none of the choices are correct
Bateman Corporation sold an office building that it used in its business for $800,550. Bateman bought the building ten years ago for $599,725 and has claimed $200,825 of depreciation expense. What is the amount and character of Bateman's gain or loss? Choices: a) $40,165 ordinary and $361,485 §1231 gain. b) $200,825 ordinary and $200,825 §1231 gain. c) $401,650 ordinary gain. d) $401,650 capital gain. e) None of the choices are correct.
Bateman Corporation sold an office building that it used in its business for $800,800. Bateman bought the building 10 years ago for $599,600 and has claimed $201,200 of depreciation expense. What is the amount and character of Bateman's gain or loss? Multiple Choice $40,240 ordinary and $362,160 §1231 gain. $201,200 ordinary and $201,200 §1231 gain. $402,400 ordinary gain. $402,400 capital gain. None of the choices are correct.
Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $19500 and the adjusted basis was $1400 at the time of the accident. The taxi was repaired at a cost of $2,800 and insurance reimbursed Don $736 of this cost. What is the amount of Don's casualty loss DEDUCTION -Bateman Corporation sold an office building that it used in its business for $800,750. Bateman bought the...
Alpha sold machinery that it used in its business to Beta, a related entity, for $40,450. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,550 and has claimed $30,450 of depreciation expense. What is the amount and character of Alpha's gain? Multiple Choice $21,350 ordinary income under §1239. $10,000 ordinary gain and $11,350 §1231 gain. $11,350 §1231 gain. $21,350 capital gain. None of the choices are correct.
Arlington LLC purchased an automobile for $80,000 on July 5, 2018. What is Arlington's depreciation expense for 2018 if its business use percentage is 80 percent (ignore any possible bonus depreciation)? (Use MACRS Table 1, and Exhibit 10-10.) Multiple Choice $6,125. $8,100. $8,000. $12,000. None of the choices are correct. Bateman Corporation sold an office building that it used in its business for $800,850. Bateman bought the building ten years ago for $599,575 and has claimed $201,275 of depreciation expense....
Two years ago, Bethesda Corporation bought a delivery truck for $30,000 (not subject to the luxury auto depreciation limits). Bethesda used MACRS 200 percent declining balance and the half-year convention to recover the cost of the truck, but it did not elect §179 expensing or eligible bonus depreciation. Answer the questions for the following alternative scenarios. a. Assuming Bethesda used the truck until it sold it in March of year 3, what depreciation expense can it claim on the truck...
1. Lassen Corporation sold a machine to a machine dealer for $30,750. Lassen bought the machine for $61,000 and has claimed $20,750 of depreciation expense on the machine. What gain or loss does Lassen realize on the transaction? 2[The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $44,750 to use in its business. In year 3, Longworth sold the machine for $39,300. Between the date of the purchase and the date...
Please use 2019 tax rates and schedule Two years ago, Bethesda Corporation bought a delivery truck for $30,000 (not subject to the luxury auto depreciation limits). Bethesda used MACRS 200 percent declining balance and the half-year convention to recover the cost of the truck, but it did not elect §179 expensing or eligible bonus depreciation. Answer the questions for the following alternative scenarios. a. Assuming Bethesda used the truck until it sold it in March of year 3, what depreciation...
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,500 and it has claimed $25,400 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $56,700 in cash for the warehouse, compute the amount and character of Hauswirth’s recognized gain or loss...