What is the correct option? ? A building has an original basis of $180,000 and accumulateddepreciation of $75,000. If the building's adjusted basis is$135,000, what is the amount of capital improvements that havebeen made to the building?A) $20,000B) $30,000C) $45,000D) $50,000E) None of these choices are correct

Step 1: Define Capital ImprovementsCapital Improvements refer to significant upgrades or additions…

Answered: A building has an original basis of…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 66P

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Show the complete solution of the following: 1. What is the cost of the land?2. What is the cost of the land improvement?3. What is the cost of the building?
Assume that additional information has been provided relating to the cost ($984,000). There are three components of the plant asset. Components 1, 2, and 3 have costs of $405,000, $260,000, and $319,000, respectively. The useful lives of components 1, 2, and 3 are 25, 20, and 30 years, respectively. Determine straight-line depreciation expense for 2020 and 2021 for each component under IFRS if the residual value is $140,000 for component 1, $168,000 for component 2, and $76,000 for component 3. (Do not round intermediate calculations and round answers to 0 decimal places, e.g. 5,275.) Depreciation expense 2020 2021 Component 1 10600 Component 2 4600 Component 3 8100
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A company purchased a track of land with the intent to use the land to put a new building. However, an old building is sitting where the new building is to be constructed, and the old building must be removed at a cost of $10,000. Should the cost of removing the old building be part of the cost of the building or be part of the cost of the land? Please explain:
A project requires $55,265 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 4 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
A project requires $16,412 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
For project A, what was the calculations for depreciation to get to the final answer of 720 000?
Land should be capitalised at what amount?
Because it violates the historical cost principle, the lower of cost or net realizable value (LCNRV) rule is NOT allowed by IFRS. True False The following costs were incurred to acquire and prepare land for a new parking lot: purchase price of land, $900,000; cost to clear the land, $40,000; cost of paving, $35,000; and cost of lighting for the parking lot, $20,000. How much should be recorded in the land improvements account? a.$40,000 b.$20,000 c.$55,000 d.$35,000
Addition of a sprinkler system to the manufactoring facility to reduce the risk of fire damage, $36,700 would be an expense in the period occured or would be capitalized and depreciated over the useful life of the asset?
16. Determine the amount of the total amortization cost base, assuming (1) no exclusions from the amortization base, and (2) all possible costs are excluded from the amortization base. Unproved property-cost $80,000, amount impaired $20,000 (if excluded) Unproved property-abandoned- -cost $30,000, no impairment Unproved property-found proved reserves- cost $18,000, no impairment Unproved property purchased- cost $50,000 Wells-in-progress on unproved property $100,000 Well completed on unproved property dry-hole cost $250,000 Total (1) Amount |(2) Amount― no exclusions all exclusions ?
Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. 2. Parking lots Electricity used by a machine 3. Excavation costs 4. Interest on building construction loan 5. Cost of trial runs for machinery 6. Drainage costs 7. Cost to install a machine 8. Fences 9. Unpaid (past) property taxes assumed 10. Cost of tearing down a building when land and a building on it are purchased

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A building has an original basis of $180,000 and accumulated depreciation of $75,000. If the building's adjusted basis is $135,000, what is the amount of capital improvements that have been made to the building? A) $20,000 B) $30,000 C) $45,000 D) $50,000 E) None of these choices are correct