A couple of years ago, the company Health4All purchased land, a building, and two depreciable assets from another corporation. All of these have recently been disposed. Use the information shown to determine the presence and amount of any capital gain, capital loss, or depreciation recapture. Asset Land Building Asset 1 Asset 2 Purchase Recovery Period, Current Book Price, $ Years Value, $ |-220,000 -800,000 -50,500 -10,000 27.5 3 3 305,000 15,500 5,000 Sales Price, $ 295,000 255,000 17,000 16,500 The capital gain (CG) amount for land is determined to be $ The capital loss (CL) amount for building is determined to be $ The depreciation recapture (DR) amount for asset 1 is determined to be $ The depreciation recapture (DR) amount for asset 2 is determined to be $ The capital gain (CG) amount for asset 2 is determined to be $

A couple of years ago, the company Health4All purchased land, a building, and two depreciable assets from another corporation. All of these have recently been disposed. Use the information shown to determine the presence and amount of any capital gain, capital loss, or depreciation recapture. Asset Land Building Asset 1 Asset 2 Purchase Recovery Period, Current Book Price, $ Years Value, $ |-220,000 -800,000 -50,500 -10,000 27.5 3 3 305,000 15,500 5,000 Sales Price, $ 295,000 255,000 17,000 16,500 The capital gain (CG) amount for land is determined to be $ The capital loss (CL) amount for building is determined to be $ The depreciation recapture (DR) amount for asset 1 is determined to be $ The depreciation recapture (DR) amount for asset 2 is determined to be $ The capital gain (CG) amount for asset 2 is determined to be $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

What is the cost of land improvements? A. P620,000 B. P654,000 C. P114,000 D. P134,000 What is the cost of the equipment? A. P959,000 B. P849,000 C. P903,000 D. P1,359,000
I want to answer this question
Required Information (The following information applies to the questions displayed below] On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $644,000, with a useful life of 20 years and a $60,000 salvage value. Land Improvements 1 is valued at $420,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,736,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $392,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 328,400 175,400 2,202,000 164,000 3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the first year these assets were in use. View…
Jsjs
Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?
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 Building account, if Smitty chooses to use the elimination method to record the revaluation? $30,000 Debit $40,000 Debit None of the above. $70,000 Debit $150,000 Debit
homework i Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $846,300 cash. The land was appraised at $194,649 and the building at $778,596. Required: a. What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building. c. Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Check my work Record the purchase in a horizontal statements model. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar. In the Statement of Cash Flows column, use the initials OA to designate operating IA for investing activity, FA for financing activity, NC for net change in cash and NA for not affected. Enter any decreases to account balances and…
From page 7-2 of the VLN, intangible assets are long term assets and would NOT include: Group of answer choices A. Goodwill B. Natural gas C. Patents D. Copyrights
(Multiple Choice Question) A building that was recently appraised at a value of $200,000 was purchased by Properties Corporation. In the journal entry, the building was debited for $183,572. This was most likely a result of: 1. The building's value having an impairment loss 2. The market value of the building increasing and the net book value of the building decreasing 3. The building amortizing in value 4. The building having been part of a basket purchase
Broad Ltd. decided on July 1, 2023 to dispose of an asset group consisting of land and a building. An active plan of disposal is being carried out, and sale is highly probable within the following year. The assets carrying values and estimated recoverable amounts at July 1.2023 are as follows: Land Building Cost $ 600 Carrying Value Estimated Recoverable Amount $ 600 $ 1,000 3,700 $4,300 2.500 2.400 $3.100 $3.400 On December 1, 2023, the asset group sold for $3,380, net of costs to sell. Required: Prepare journal entries that are appropriate to record the information above.
Need answer with this question
Carver Incorporated purchased a building and the land on which the building is situated for a total cost of $983,000 cash The land was appraised at $248 699 and the building at $881,751 Required: What is the accounting term for this type of acquisition? b. Determine the amount of the purchase cost to allocate to the land and the amount to allocate to the building Would the company recognize a gain on the purchase? d. Record the purchase in a horizontal statements model.