Carter vacated an office building and let it out to a third party on 30 June 20X8. The building had an original cost of $900,000 on 1 January 20X0 and was being depreciated over 50 years. It was judged to have a fair value on 30 June 20X8 of $950,000. At the year end date of 31 December 20X8 the fair value of the building was estimated at $1.2 million. Carter uses the fair value model for investment property. What amount will be shown in revaluation surplus at 31 December 20X8 in respect of this building?

Q: Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse…

A: Answer to question a. Purchase cost of warehouse $65,000 Less: Depreciation claimed till year 0…

Q: Shannon purchased some used equipment for her business in November of last year. She originally…

A: Depreciation is the part of cost of a fixed asset written off as expense during a year. Depreciation…

Q: Jane received a gross condemnation award of $50,000. Of this, $40,000 was for the condemned property…

A: Condemnation is the legal procedure of taking private property for public use without the owner's…

Q: Wildhorse Ltd. owned several manufacturing facilities. On September 15 of the current year,…

A: Annual Depreciation (straight line method) = (Cost of the assets - Residual value) / Expected life…

Q: In March of Year 2, Mason contributed the following two properties, which he acquired in February of…

A: Adjusted base value describes the amount a person has invested in his property. Expenses incurred…

Q: On May 15, 2020, Aldean Company, a calendar year taxpayer, purchased and placed into service a…

A: As per USA Income Tax Act i.e rules of depreciation by IRS ,  a…

Q: On April 1, 2025, Skysong Company received a condemnation award of $481,600 cash as compensation for…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: On April 1st, Leo

A: Any residential rental property placed in service after 1986 is depreciated using the…

Q: calculate Special depreciation allowance for qualified property

A: Depreciation is the actually nothing but a weapon through which a business gets the recovery of the…

Q: Marisela acquired a brand logo from Enrique industries for $10,000. She plans to renew this…

A: In this state of affairs, Marisela plans to renew the trademark indefinitely every year for period…

Q: Blue Mining Company purchased land on February 1, 2025, at a cost of $914,200. It estimated that a…

A: The cost of goods sold represent the direct cost incurred to produce the goods. The direct costs…

Q: Darth Vader lightsaber is a depreciable asset. He uses the straight-line depreciation method. He…

A: Depreciation is considered an operating expense, which is charged on the value of the Asset. It can…

Q: Roger, an individual, owns a proprietorship Green Options. For the year 2020, Roger reports the…

A: The adjusted gross income is calculated by deducting the business expense, loss on business machine…

Q: Stark Industries., a C corporation, owned an office building for several years. The building was…

A: Depreciation :— The monetary value of an asset decreases over time due to use, wear and tear or…

Q: Gupta Co purchased a building on 30 June 19X9 for $250,000. At the date of purchase, Gupta estimated…

A: Depreciation refers to the cost of machinery that is expenses during the life of the asset due to…

Q: Heather owns a two-story building. The building is used 40% for business use and 605 for personal…

A:

Q: Luke sold a building and the land on which the building sits to his wholly owned corporation,…

A: Ordinary gain or loss refers to the profit or loss realized from the  trade, exchange, or…

Q: On January 1, 2015, MARS Inc. acquired a real property consisting of a land with a building for…

A:

Q: Lopez acquired a building on June 1, 2014, for $9,829,900. Compute the depreciation deduction…

A: The rate of depreciation will be 3.636% on the total value of the asset on the straight-line method.…

Q: iaz Company owns a machine that cost $250,000 and has accumulated depreciation of 182,000. Prepare…

A: The four journal entries provided are related to the disposal of a machine by Diaz Company. The…

Q: On January 1, 2022, Martinez Corporation acquires a building at a cost of $195,000. The building is…

A: Commercial organizations used journal entries to record their financial transactions in their…

Q: Diaz Company owns a milling machine that cost $125,200 and has accumulated depreciation of $90,700.…

A: Carrying Amount of Asset = cost - Accumulated Depreciation Gain/Loss on Sales = Sale Price -…

Q: to the building. At the time of the purchase it was estimated that the building would have a useful…

A: A journal entry is the act of maintaining or producing records of any economic or non-economic…

Q: 40 years on a straight-line basis with no residual value. The entity adopted a policy of revaluation…

A:

Q: On January 1, 2022, Aniyah, a sole proprietor, purchased for use in her business a used production…

A: A taxpayer is allowed to claim a deduction for the depreciation The depreciation amount according to…

Q: Hazel purchased a new business asset (five-year asset) on September 30, 2021, at a cost of $100,000.…

A: It is depreciation method that provides greater accelerated depreciation in the initial years of…

Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…

A: The question is based on the concept of Financial Accounting.

Q: On May 1st, 2015, Nancy Silva paid $870,000 for a commercial building. She later sold the building…

A: The  GDS method of depreciation stands for General Depreciation System. It is one of the most…

Q: Henry Oldham purchased the office building in which his CPA firm was housed in 1983 . Henny…

A: Detailed Calculation of Henry's Gain on the Sale1. Adjusted Basis:• Purchase price: $225,000• This…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.