IBM Ltd. undepreciated capital cost of a Class 1 Building was $180,484 at the year ended 2022. The original cost of the building was $600,000. The building was sold in 2023 for proceeds of cash which was $550,000. Which one of the following statements is false for 2023? Recapture occurs because the estimated decline in value was overstated (ie the asset was worth more in the end) A capital loss will be incurred of $550,000 $600,000-$50,000 O The company will have a recapture of $369,516 Since the purchase was over $50,000 a separate class 1 was set up

IBM Ltd. undepreciated capital cost of a Class 1 Building was $180,484 at the year ended 2022. The original cost of the building was $600,000. The building was sold in 2023 for proceeds of cash which was $550,000. Which one of the following statements is false for 2023? Recapture occurs because the estimated decline in value was overstated (ie the asset was worth more in the end) A capital loss will be incurred of $550,000 $600,000-$50,000 O The company will have a recapture of $369,516 Since the purchase was over $50,000 a separate class 1 was set up

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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