Need help with this general accounting question An asset owned by Horizon Enterprises has an original basis of$30,000, and depreciation of $18,000 has been claimed on theasset. If the asset's adjusted basis is $20,000, what is the amountof capital improvements that have been made to the asset?a. $8,000b. $10,000c. $12,000d. $18,000

Step 1: Information givenOriginal Basis = $30,000Accumulated Depreciation = $18,000Adjusted Basis =…

Answered: An asset owned by Horizon Enterprises…

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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A. CALCULATE the amount, if any, of recapture of depreciation, ordinary loss or capital gain on the disposal of an asset that was sold at the end of year 1 for $ 18,000. The machine was originally purchased at a cost of $ 20,000 and was depreciated using the MACRS method for a 5 year property class. B. INDICATE if there was recapture of depreciation (D), ordinary loss (P) or capital gain (G) in the disposal of this asset. [fill these blanks] * Amount = $. ___- * Type of disposition:

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An asset owned by Horizon Enterprises has an original basis of $30,000, and depreciation of $18,000 has been claimed on the asset. If the asset's adjusted basis is $20,000, what is the amount of capital improvements that have been made to the asset? a. $8,000 b. $10,000 c. $12,000 d. $18,000