The following properties have been owned by a business for more than one year. Which of them would not qualify for Section 1231 treatment on its disposal? a. Property held for rental income b. Depreciable assets used in the business c. Stock held in Inventory d. Leasehold improvements

The following properties have been owned by a business for more than one year. Which of them would not qualify for Section 1231 treatment on its disposal? a. Property held for rental income b. Depreciable assets used in the business c. Stock held in Inventory d. Leasehold improvements

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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Assume that Sivart Corporation has 2023 taxable income of $1,750,000 for purposes of computing the §179 expense and acquired several assets during the year. Assume the delivery truck does not qualify for bonus depreciation. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Asset Placed in Service Basis Machinery June 12 $ 1,440,000 Computer equipment February 10 70,000 Delivery Truck—used August 21 93,000 Furniture April 2 310,000 Total $ 1,913,000 b. What is the maximum total depreciation (§179, bonus, MACRS) that Sivart may deduct in 2023 on the assets it placed in service in 2023?
3. S1: An entity shall measure a noncurrent asset or disposal group classified as held for sale at the lower of carrying amount and recoverable amount.S2: A noncurrent asset that is to be abandoned shall not be classified as held for sale because it is unlikely that the noncurrent asset will be sold within twelve months. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true 4. In order for a noncurrent asset to be classified as held for sale, the sale must be highly probable, which requires the following, except * A. The asset must be actively marketed at a sales price that is reasonable in relation to the fair value. B. Presence of an active marketing program C. Marketing program or plan is unlikely to be significantly changed or withdrawn D. Commitment to a plan to sell the asset O E. None of them
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Chaz Corporation has taxable income in 2022 of $316,200 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $ 822,000 Computer equipment February 10 972,000 Delivery truck August 21 110,000 Qualified real property (MACRS, 15 year, 150% DB) September 30 1,541,000 Total $ 3,445,000 What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
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E9.1 (LO 1) (Acquisition Costs of Realty) The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. a. Money borrowed to pay building contractor (signed a note) b. Payment for construction from note proceeds c. Cost of land fill and clearing d. Delinquent real estate taxes on property assumed by purchaser e. Premium on 6-month insurance policy during construction f. Refund of 1-month insurance premium because construction completed early g. Architect's fee on building h. Cost of real estate purchased as a plant site (land $200,000 and building $50,000) i. Commission fee paid to real estate agency j. Installation of fences around property k. Cost of razing and removing building 1. Proceeds from salvage of demolished building m. Interest paid during construction on money borrowed for construction n. Cost of parking lots and driveways o. Cost of trees and shrubbery…
The following expenditures and receipts are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(294,000 ) (b) Payment for construction from note proceeds 294,000 (c) Cost of land fill and clearing 10,230 (d) Delinquent real estate taxes on property assumed by purchaser 7,990 (e) Premium on 6-month insurance policy during construction 11,280 (f) Refund of 1-month insurance premium because construction completed early (1,880 ) (g) Architect’s fee on building 26,210 (h) Cost of real estate purchased as a plant site (land $201,800 and building $54,800) 256,600 (i) Commission fee paid to real estate agency 8,660 (j) Installation of fences around property 3,810 (k) Cost of razing and removing building 11,840 (l) Proceeds from salvage of…
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What is the treatment of a § 179 expensing carryforward? Any § 179 amount in excess of business income / the asset acquisition cost limitation is carried forward to future taxable years and added to/ deducted from other amounts eligible for expensing. The § 179 amount eligible for expensing in a carryforward year is limited to the greater / lesser of (1) the current statutory dollar amount increased / reduced by the cost of § 179 property placed in service in excess of the appropriate acquisition limit in the carryforward year or (2) the business income / asset acquisition cost limitation in the carryforward year.
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A company bought a building with the intention of selling it in two years ' time and not to use it for their own operations . The building will be reported in the classified Statement of Financial Position as: A) a an intangible asset b) property , plant and equipment с) a long -term investment d) a land expense
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