Don't use ai given answer general accounting question A building was purchased for $200,000. Over the years, $150,000 indepreciation has been claimed, and the current adjusted basis is $100,000.What is the amount of capital improvements made to the building?A. $50,000B. $150,000C. $200,000D. $300,000

Step 1: Definition of Capital ImprovementsCapital improvements refer to significant upgrades,…

Answered: A building was purchased for $200,000.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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The following intangible assets were purchased by Hanna Unlimited: A. A patent with a remaining legal life of twelve years is bought, and Hanna expects to be able to use it for six years. It is purchased at a cost of $48,000. B. A copyright with a remaining life of thirty years is purchased, and Hanna expects to be able to use it for ten years. It is purchased for $70,000. Determine the annual amortization amount for each intangible asset.
Billy Hoyle Inc. recently purchased an asset for $2,500,000 that will be used in a 3-year project. The asset is in the 4-year MACRS class. The depreciat percentage each year is 33.33 percent. 44.45 percent, 14.81 percent, and 7.41 percent, respectively. What is the amount of depreciation in Year 2? Multiple Choice $833,333 $185,250 $833.250 $370,250
A building was purchased for $68,000. The asset has an expected service life of eight years and depreciation expense each year is $5,000 using the straight-line method. What is the residual value of the building? Multiple Choice $0 $28,000 $8,500 $13,500
9. An office building was purchased for $220,000. Of the total value, 25 percent is attributed to the land. Find the annual depreciation and the property's book value after 4 years
Land and a building on the land are purchased for $310,000. The appraised values of the land and building are $66,000 and $264,000, respectively. The cost allocated to the building should be: a. $25,200 b. $109,800 c. $135,000 d. $248,000
Lynda Inc. purchased a piece of equipment for $15,000. Additional costs include transportation, $300; installation, $700; test run, $1,000; and insurance from the date that the equipment begins productive output, $1,200. What is the capitalized amount of the equipment? $17,000 $18,200 $16,000 $15,000
Consider a five-year MACRS asset purchasedat $80,000. (Note that a five-year MACRS propertyclass is depreciated over six years due to the half-yearconvention. The applicable salvage values would be$40,000 in year 3, $30,000 in year 5, and $10,000 inyear 6.) Compute the gain or loss amounts when theasset is disposed of in(a) Year 3.(b) Year 5.(c) Year 6
Smitty Inc. wishes to use the revaluation model for this property: Before Revaluation • Building Gross Value 120,000 • Building Accumulated Depreciation 40,000 • Net carrying value 80,000 The fair value for the property is $150,000. Assuming this is the first year of using the revaluation model, what amount would be booked to the Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation? $75,000 Credit O None of the above. O $35.000 Credit $35.000 Debit $40,000 Debit
A company purchased an asset for $3,800,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The depreciation percentage each year is 33.33 percent, 44.45 percent, and 14.81 percent, respectively. What is the book value of the equipment at the end of the project? Multiple Choice $281,580 $2,533,460 $3,518,420 $844,360 $0
Consider a 5-year MACRS asset, which was purchased at $140,000. The asset was disposed of at end of year 5 with a salvage value of $50,000. What is amount of gain(or loss) when asset is disposed of ? O $33,872 O $11,280 O $17,744 O $16,128
At the beginning of current year, Exodus Company purchased a machine for 8,000,000 and received a government grant of 2,000,000 toward the capital cost. The machine is to be depreciated on a straight line basis over 10 years and estimated to have a residual value of 500,000 at the end of this period. Required: Prepare journal entries for the current year assuming the grant is accounted for as deferred income and deduction from asset.
Electric generating and transmission equipment is placed in service at a cost of $3,000,000. It is expected to last 30 years with a salvage value of $250,000.a. What is the MACRS-GDS property class? b. Determine the depreciation deduction and the unrecovered investment during each of the first 4 tax years.

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A building was purchased for $200,000. Over the years, $150,000 in depreciation has been claimed, and the current adjusted basis is $100,000. What is the amount of capital improvements made to the building? A. $50,000 B. $150,000 C. $200,000 D. $300,000