A. ACQUISITION COSTSMr. Ardi acquired land at a cost ofRp4.200.000.000 on April 1, 2019. Inaddition to this cost, he had to pay thefollowing expenses:a. Commission fee, 2% from the landprice, Rp84,000,000b. Land acquisition tax Rp12,000,000c. Removal cost of old (unused)building Rp20.500.000. Mr. Ardireceived Rp17.000.000 from the salesof salvage materials.d. Rpl10.000.000 to build a fencee. Rp215.000.000 to build a parking lotInstructions:Prepare the journal entries for the abovetransaction! (4%)

If a fixed asset is acquired, the cost spent on the acquisition of fixed assets is referred to as…

Answered: A. ACQUISITION COSTS Mr. Ardi acquired…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject:accounting Green Bank Corporation claimed $300,000 in Sec.179 epxense and $200000 in bonus depreciation in 2020 and the following is the remaining basis for each asset purchased in 2020 after applying Sec 179 and bonus depreciation: Desks and chairs purchasd on March remaining basis 150,000 and Computers purchased in April remaining basis 250000What is the TOTAL depreciation expense for the taxpayer in 2020?
17. MACRS and Averaging Conventions. (Obj. 1) Jan purchased the following properties during 2020. dr Description New Computer Used Machinery Used Office building 00 New Equipment Date Placed in Service March 9, 2020 July 17, 2020 September 6, 2020 hs bn 000.0 Cost $ 6,000 70,000 270,000 84,000 December 27, 2020 Compute Jan's depreciation for each of these properties for 2020 and 2021. Assume that Jan elected to expense 50% of the cost of each item of qualified property and elected out of bonus depreciation. The machine and equipment are 7-year property.
A taxpayer places a $1,050,000 5-year recovery period asset in service in 2020. This is the only asset placed in service in 2020. Assuming half-year convention, an election to expense under Section 179, and no income limitation, what is the amount of total cost recovery deduction (no bonus depreciation)? a.$210,000 b.$1,040,000 c.$1,026,000 d.$1,050,000 e.$1,042,000
15. Blue Company sold machinery for $45,000 on December 23, 2021. The machinery had been acquired on April 1, 2019, for $69,000 and its adjusted basis was $34,200. The § 1231 gain, § 1245 recapture gain, and § 1231 loss from this transaction are: a.$0 § 1231 gain, $0 § 1245 recapture gain, $14,800 § 1231 loss. b.$0 § 1231 gain, $10,800 § 1245 recapture gain, $34,200 § 1231 loss. c.$0 § 1231 gain, $34,200 § 1245 recapture gain, $0 § 1231 loss. d.$0 § 1231 gain, $10,800 § 1245 recapture gain, $0 § 1231 loss.
Carlos made an initial purchase of 57,000. Carlos is using straight-line depreciation over 6 years and the purchase has a terminal value of 25,000 after 5 years. Assume this is for tax purposes. (i) Calculate the allowable annual depreciation: $11,000 $9,500 $11,400 O $25,000
Bremer Company made the following exchanges of assets during 2019: Jan. 1 Acquired a more advanced machine worth $10,000 by paying $2,000 cash and giving up a machine that had originally cost $40,000 and has a book value of $12,000. Feb. 1 Acquired a building worth $55,000 by paying $5,000 cash and giving up a piece of land that had originally cost $35,000. Mar. 1 Acquired a more advanced machine worth $20,000 by paying $5,000 cash and giving up a machine that had originally cost $13,000 and has a book value of $11,000. Apr. 1 Acquired a car by giving up a truck that had originally cost $20,000, has a book value of $15,000, and has a "blue book" value of $16,800. In addition, the company received $1,000 cash. Required: Prepare Bremer's journal entry for each exchange. Assume all exchanges were determined to have commercial substance.
Tax Drill - Section 179 For his business, McKenzie purchased qualifying equipment that cost $212,000 in 2022. The taxable income of the business for the year is $5,600 before consideration of any § 179 deduction. If an amount is zero, enter "0". a. McKenzie's § 179 expense deduction is $ for 2022. His § 179 carryover to 2023 is $ b. How would your answer change if McKenzie decided to use additional first-year (bonus) depreciation on the equipment? McKenzie's § 179 expense deduction is $ for 2022. His § 179 carryover to 2023 is $
Vikrambhai
Please calculate the rental income for tax purposes. In July 2022, an individual acquires a rental property for $20,000. $110,000 is allocated to the land and $160,000 is allocated to the building. The property is rented for $1,800 per month. Condo fees are $50 per month, property taxes are $1,000 per year and interest expense for 2022 is $6,100. Note: the building was acquired after 1987 for residential use; therefore, a class 1 asset (CCA rate = 4%)
Haresh
A-7
1) Kristine sold one asset on March 20th of 2023. It was a computer with an original basis of $10,000, purchased in May of 2021 and depreciated under the half-year convention. What is Kristine's depreciation deduction for 2023? Note: Round final answer to the nearest whole number. Blank] Blank 1 Add your answer

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