eBookExercise 8-21 (LO. 2)Lopez acquired a building on June 1, 2015, for $1,000,000. Compute the depreciation deduction assuming the building is classified as (a)residential and (b) non residential.Click here to access the depreciation table to use for this problem.If required, round your answers to the nearest dollar.a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate.b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as nonresidential real estate.etsal.aCheck My Work216 PM59 F Partly suneyCA4 de mibit 8.8 MACRS Straight-Line Depreciation for Real Property AssumingMid-Month Convention* (Percentage Rates)For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real PropertyRecovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service):Year(s)1456891011123.4853.1822.8792.5762.2731.9701.6671.3641.0610.7580.4550.1522-183.6363.6363.6363.6363.6363.6363.6363.6363.6363.6363.6363.63619-273.6373.6373.6373.6373.6373.6373.6373.6373.6373.6373.6373.637281.9702.2732.5762.8793.1823.4853.6363.6363.6363.6363.6363.636290.0000.0000.0000.0000.0000.0000.1520.4550.7581.0611.3641.667For Property Placed in Service after December 31, 1986, and before May 13, 1993:31.5-Year Nonresidential Real PropertyThe Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service):RecoveryYear(s)345671011123.0422.7782.5132.2491.9841.7201.4551.1900.9260.6610.3970.1322-193.1753.1753.1753.1753.1753.1753.1753,1753.1753.1753.1753.17520-313.1743.1743.1743.1743.1743.1743.1743.1743.1743.1743.1743.174321.7201.9842.2492.5132.7783.0423.1753.1753.1753.1753.1753.175330.0000.0000.0000.0000.0000.0000.1320.3970.6610.9261.1901,455For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real PropertyThe Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service):RecoveryYear(s)12.46.81011121.2.4612.2472.0331.8191.6051.3911.1770.9630.7490.5350.3210.1072-392.5642.5642.5642.5642.5642.5642.5642.5642.5642.5642.5642.564400.1070.3210.5350.7490.9631.1771.3911.6051.8192.0332.2472.461*The official tables contain a separate row for each year. For ease of presentation, certain years are3:19 PM59°F Partly sunny2/20/2022bp

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

Exercise 8-21 (LO. 2) Lopez acquired a building on June 1, 2015, for $1,000,000. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate. b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as nonresidential real estate.

Exercise 8-21 (LO. 2) Lopez acquired a building on June 1, 2015, for $1,000,000. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as residential rental real estate. b. Calculate Lopez's cost recovery deduction for 2020 if the building is classified as nonresidential real estate.

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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Exercise 5-7 (Algorithmic) (LO. 7) Lopez acquired a building on June 1, 2017, for $26,969,100. Compute the depreciation deduction assuming the building is classified as (a) residential and (b) non residential. Click here to access the depreciation table to use for this problem. If required, round your answers to the nearest dollar. a. Calculate Lopez's cost recovery deduction for 2022 if the building is classified as residential rental real estate. D b. Calculate Lopez's cost recovery deduction for 2022 if the building is classified as nonresidential real estate.
MCQ3 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 Accumulated Depreciation account, if Smitty chooses to use the proportional method to record the revaluation?
Modified Accelerated Cost Recovery System (MACRS) (LO 8.2) Calculate the following: Click here to access the various depreciation tables. If required, round your final answers to the nearest dollar. If your answer is zero, enter "0". The first year of depreciation on a office building that cost $250,000 purchased June 2, 2022. 4,168 X b. The second year (2023) of depreciation on a computer that cost $5,000 purchased in May 2022, using the half-year convention and accelerated depreciation considering any bonus depreciation taken Ov a. The first year of depreciation on a computer costing $2,800 purchased in May 2022, using the half-year convention and straight-line depreciation with no bonus depreciation 280 b. The third year of depreciation on business furniture costing $10,000 purchased in March 2020, using the half-year convention and accelerated depreciation but no bonus depreciation. 1,748 x
DEPRECIATION OF FIXED ASSETS: ASSET INFO: use the following information for all of the depreciation related questions that follow. Keeping Kids Active Company, Inc makes playground balls for children. KKAC, Inc purchased and began using (placed in service) a piece of equipment to help the company make the balls on September 1, 2020. The equipment cost $56,000 to purchase, $4,000 for delivery and installation (combined). At the time of purchase, KKAC estimates this equipment will be used for 4 years and have a salvage value of $6,00O. KKAC expects to make 250,000 playground balls in total with this equipment. *** Determine the Asset Cost (acquisition cost) of this asset. Show your calculations on your PDF upload.
DEPRECIATION OF FIXED ASSETS: ASSET INFO: use the following information for all of the depreciation related questions that follow. Keeping Kids Active Company, Inc makes playground balls for children. KKAC, Inc purchased and began using (placed in service) a piece of equipment to help the company make the balls on September 1, 2020. The equipment cost $56,000 to purchase, $4,000 for delivery and installation (combined). At the time of purchase, KKAC estimates this equipment will be used for 4 years and have a salvage value of $6,00O. KKAC expects to make 250,000 playground balls in total with this equipment. *** Determine the Asset Cost (acquisition cost) of this asset. Show your calculations on your PDF upload.
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5. yellow company purchased the following asset on July 16 2022 and placed it in service on the date shown • Apartment building 12/29/2022, total price=2000000;500000 allocated to the land. a. What is the maximum allowed cost recovery for 2022 for the apartment building?
Hello, I am needing help with answering question 2 and final question #1.
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Al والعلوم التطبيقية ► Practice Exercise (2) A hotel purchases an air-conditioning system for OMR 100,000 and with an installation cost of OMR15,000 on 1st October 2017. The useful life of the air-conditioning system is for 10 years and with the residual value of OMR 20,000. University of hology and Applied Scan Assume that the company use straight line method for calculating depreciation, Calculate the following: a. Rate of depreciation b. Depreciation amount and Book value of the machinery for year 1, year 2, year 3 جامعة التقنية والعلوم التطبيقية University of Technology and Applied Sciences
Question 1 On January 1, 2014, Evers Company purchased the following machine for use in its production process: Machine: The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. Instructions a) Calculate the amount of depreciation expense that Evers should record each year of its useful life under the following assumptions. Show your workings. (1) Straight-line method (2) Double declining balance method (3) Units-of-activity method and estimates that the useful life of machine is 125,000 units. Actual usage is as follows: 2014, 45,000 units; 2015, 35,000 units; 2016, 25,000 units; 2017, 20,000 units. b) Which method used to calculate depreciation reports the highest amount of depreciation expense year 1? The highest in year 4? The highest total amount over the 4-year period? in