Please do not give image format 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)45678101112-1819-27282912-1920-3132331233.4853.182 2.879 2.576 2.2731.9703.636 3.636 3.636 3.636 3.636 3.6363.637 3.637 36373.637 3.6371.970 2.2733.182 3.4853.6372.8790.000For Property Placed in Service after December 31, 1986, and before May 13, 1993:31.5-Year Nonresidential Real PropertyRecovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service):Year(s)1345678910110.661 0.3971.1900.9263.175 3.1753.175 3.1753.174 3.174 3.174 3.1743.175 3.175 3.175 3.175 3.1750.397 0.661 0.926 1.190 1.455RecoveryYear(s)91.6671.061 0.7581.3643.636 3.6363.6363.6363.637 3.637 3.637 3.6373.636 3.6363.6373.636 3.6363.6362.5760.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.364 1.66712-39403.0423.1753.1741.7200.000For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property22.778 2.513 2.249 1.9841.720 1.4553.175 3.175 3.1753.1753.175 3,1753.174 3.1743.174 3.174 3.174 3.1741.984 2.2492513 2.778 3.042 3.1750.000 0.000 0.000 0.000 0.000 0.132120.455 0.1523.6363.6363.6373.63690.5350.963 0.7492.5642.5641.605 1.819 2.0332.564The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is Placed in Service):12358101172,461 2.247 2.033 1.819 1.005 1.391 1.1772.564 2.564 2.564 2.564 2.564 2.564 2.5640.107 0.321 0.535 0349 0.963 1.177 1.391120.1323.1753.1740.3212.5642247120.1072.5642.461 On March 6, 2016, Cloe Company acquired an office building for $9,700,000 (with $700,000 being allocated to the land). The straight-linecost recovery method was used. The property was sold on June 22, 2020, for $8,700,000.Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property.If an amount is zero, enter "0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearestdollar..a. Compute the cost recovery and adjusted basis for the building.The cost recovery is sand the adjusted basis for the building is $b. What are the amount and nature of Cloe's gain or loss from disposition of the property? What amount, if any, of the gain isunrecaptured § 1250 gain?There ison the sale of the property, of whichof recognized lossis subject to 5 1250 recapture.

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Description: Please do not give image format 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

Adjusted basis is helpful to calculate the amount of gain or loss incurred on the sale of the asset.…

Business

Accounting

On March 6, 2016, Cloe Company acquired an office building for $9,700,000 (with $700,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on June 22, 2020, for $8,700,000. Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property. If an amount is zero, enter "0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearest dollar. a. Compute the cost recovery and adjusted basis for the building. The cost recovery is and the adjusted basis for the building is b. What are the amount and nature of Cloe's gain or loss from disposition of the property? What amount, if any, of the gain is unrecaptured $1250 gain? There is S of recognized loss on the sale of the property, of which a is subject to 5 1250 recapture.

On March 6, 2016, Cloe Company acquired an office building for $9,700,000 (with $700,000 being allocated to the land). The straight-line cost recovery method was used. The property was sold on June 22, 2020, for $8,700,000. Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property. If an amount is zero, enter "0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearest dollar. a. Compute the cost recovery and adjusted basis for the building. The cost recovery is and the adjusted basis for the building is b. What are the amount and nature of Cloe's gain or loss from disposition of the property? What amount, if any, of the gain is unrecaptured $1250 gain? There is S of recognized loss on the sale of the property, of which a is subject to 5 1250 recapture.

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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Concept explainers

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.

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Question

Please do not give image format

For Property Placed in Service after December 31, 1986: 27.5-Year Residential Real Property
Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service):
Year(s)
4
5
6
7
8
10
11
1
2-18
19-27
28
29
1
2-19
20-31
32
33
1
2
3
3.485
3.182 2.879 2.576 2.273
1.970
3.636 3.636 3.636 3.636 3.636 3.636
3.637 3.637 3637
3.637 3.637
1.970 2.273
3.182 3.485
3.637
2.879
0.000
For Property Placed in Service after December 31, 1986, and before May 13, 1993:31.5-Year Nonresidential Real Property
Recovery The Applicable Percentage Is (Use the Column for the Month in the First Year the Property Is Placed in Service):
Year(s)
1
3
4
5
6
7
8
9
10
11
0.661 0.397
1.190
0.926
3.175 3.175
3.175 3.175
3.174 3.174 3.174 3.174
3.175 3.175 3.175 3.175 3.175
0.397 0.661 0.926 1.190 1.455
Recovery
Year(s)
9
1.667
1.061 0.758
1.364
3.636 3.636
3.636
3.636
3.637 3.637 3.637 3.637
3.636 3.636
3.637
3.636 3.636
3.636
2.576
0.000 0.000 0.000 0.000 0.000 0.152 0.455 0.758 1.061 1.364 1.667
1
2-39
40
3.042
3.175
3.174
1.720
0.000
For Property Placed in Service after May 12, 1993: 39-Year Nonresidential Real Property
2
2.778 2.513 2.249 1.984
1.720 1.455
3.175 3.175 3.175
3.175
3.175 3,175
3.174 3.174
3.174 3.174 3.174 3.174
1.984 2.249
2513 2.778 3.042 3.175
0.000 0.000 0.000 0.000 0.000 0.132
12
0.455 0.152
3.636
3.636
3.637
3.636
9
0.535
0.963 0.749
2.564
2.564
1.605 1.819 2.033
2.564
The Applicable Percentage Is (Use the Column for the Month in the First Year the Property is Placed in Service):
1
2
3
5
8
10
11
7
2,461 2.247 2.033 1.819 1.005 1.391 1.177
2.564 2.564 2.564 2.564 2.564 2.564 2.564
0.107 0.321 0.535 0349 0.963 1.177 1.391
12
0.132
3.175
3.174
0.321
2.564
2247
12
0.107
2.564
2.461

On March 6, 2016, Cloe Company acquired an office building for $9,700,000 (with $700,000 being allocated to the land). The straight-line
cost recovery method was used. The property was sold on June 22, 2020, for $8,700,000.
Click here to access the Exhibit for MACRS Straight-Line Depreciation for Real Property.
If an amount is zero, enter "0". Do not round cost recovery factors. Round the total cost recovery deduction to the nearest
dollar..
a. Compute the cost recovery and adjusted basis for the building.
The cost recovery is s
and the adjusted basis for the building is $
b. What are the amount and nature of Cloe's gain or loss from disposition of the property? What amount, if any, of the gain is
unrecaptured § 1250 gain?
There is
on the sale of the property, of which
of recognized loss
is subject to 5 1250 recapture.

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