Answered: Darnell purchased a new power washer…

Darnell purchased a new power washer for his detail business but ended up selling it within 7 months. What type of asset is this piece of equipment?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Darnell purchased a new power washer for his detail business but ended up selling it within 7 months. What type of asset is this piece of equipment?

O CapitalO Personal Ordinary O Section 1231

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Required information [The following information applies to the questions displayed below.] Carl purchased an apartment complex for $3.5 million on March 17 of year 1. of the purchase price, $1,500,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $84,000. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Enter your answers in dollars and not in millions of dollars. b. What is Carl's allowable depreciation deduction for year 3 if the real property is sold on January 2 of year 3? Note: Do not round intermediate computations. Round your final answer to the nearest whole dollar amount. Depreciation for year 3
10 Part 2 of 3 Print References ! Required information Problem 11-44 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.] Moran owns a building he bought during year 0 for $201,000. He sold the building in year 6. During the time he held the building, he depreciated it by $38,750. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers blank. Enter zero if applicable. Problem 11-44 Part-b (Algo) b. Moran received $226,000. Description Total Gain or (Loss) Recognized Remaining §1231 gain or (loss) Amount
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Ees Required information Problem 01-51 (LO 01-2) (Algo) [The following information applies to the questions displayed below.] Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $2,500 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $4,500. During the year, he drove his car a total of 16,200 miles (a combination of business and personal travel). Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Problem 01-51 Part-b (Algo) b. Ryan estimates that he drove approximately 1,720 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 900 miles. What business expense amount can Ryan deduct (if any) for these trips? Maximum deductible amount $ 589
Vikram
Sh2 Please help me Solution
A3
Indicate whether the following items are Section 1245 or Section 1250 property or, if neither, indicate what type of property they are considered to be (e.g., capital asset, Section 1231 asset). (Remember that Section 1245 and Section 1250 properties are sub-categories of depreciable Section 1231 property.) Assume all the items have been held long-term. Equipment used in the business Personal automobile Truck used in the business Escalator used in the business Inventory Residential rental housing Nonresidential real property depreciated under the straight-line method Leasehold of Section 1245 property

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