Vanessa recently paid $200,000 cash to purchase both a building and equipment. The fair market value of the building is $180,000, and the fair market value of the equipment is $40,000. When recording this purchase, Vanessa should
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- Assume that you recently applied for a student loan to go to graduate school. As part of the appli-cation process, your bank requested a list of your assets. Aside from an extensive CD collection, your only other asset is a pickup truck. You purchased the truck six years ago for $15,000. Its cur-rent fair value is approximately $5,000. a. What factors caused your pickup truck to depreciate $10,000 in value?b. Assume that the bank is willing to lend you money for graduate school. Even with the loan,however, you still need to raise an additional $5,000. Do you think that the bank will lend you$5,000 more for graduate school if you agree to use your truck as collateral? Explain.c. Assume that the truck has been used solely in a delivery service business that you operated while in college. Would your balance sheet necessarily show $10,000 in accumulated depre-ciation related to the truck? Explain.a) Brittany purchased a building for $160,000 on January 1, 2013. The purchase price does not include land. (Use Table 6A-6 and Table 6A-8) Required: Calculate the cost recovery for 2013 and 2021 if the real property is: Residential real property. A warehouse. Note: For all requirements, round your final answers to the nearest whole dollar amount. b) Brittany purchased a building for $160,000 on January 1, 2013. The purchase price does not include land. (Use Table 6A-6 and Table 6A-8) Required: Calculate the cost recovery for 2013 and 2021 if the real property is: Residential real property. 2013 ? 2021 ? A warehouse. 2013 ? 2021 ? Note: For all requirements, round your final answers to the nearest whole dollar amount. Pleease don't answer in hand written thankuTerry purchased a machine for $12,000; the seller is holding the note. Terry paid $2,400 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $3,600. Terry owes $8,000 to the Seller. What is Terry’s adjusted basis in the machine? Group of answer choices $10,800 $8,400 $2,800 $16,400
- Gwen sold some equipment for $10,250 in cash, $1,000 of marketable securities, the buyer assumption of her $1,500 loan and incurred selling expenses of $500. She had purchased the equipment several years ago for $22,000. On November 10th of the current year, the computer was worth $11,50O. If $11,500 of depreciation deductions had been taken, answer the following questions. a. What is the Gwen's amount realized in the transaction? b. What is Gwen's adjusted basis in the equipment? c. What is Gwen's recognized gain or loss? d. How is Gwen's gain taxed?Required information. [The following information applies to the questions displayed below.] Carl purchased an apartment complex for $1.3 million on March 17 of year 1. of the purchase price, $400,000 was attributable to the land the complex sits on. He also installed new furniture into half of the units at a cost of $62,000. (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. a. What is Carl's allowable depreciation deduction for his real property for years 1 and 2? Note: Round your final answers to the nearest whole dollar amount. Year 11 Year 2 Depreciation DeductionH3. Grayson purchased his primary residence for $260,000. As part of the closing procedure, he paid $2,900 in loan origination fees, $750 to a lawyer to review the purchase contract and other closing papers, $250 for a property survey, and $1,200 for title insurance. He also gave the real estate agent a $100 gift certificate in appreciation for her hard work. What is Grayson's basis in the residence? Please show proper step by step calculation
- ! Required information [The following information applies to the questions displayed below.] Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in year 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is Russell's recognized gain in year O, year 1, and year 2? Year Recognized Gain 0 1 2! Required information [The following information applies to the questions displayed below.] Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in year 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is Russell's realized gain on the transaction? Realized gainJulia currently is considering the purchase of some land to be held as an investment. She and the seller have agreed on a contract under which Julia would pay $1,000 per month for 60 months, or $60,000 total. The seller, not in the real estate business, acquired the land several years ago by paying $10,000 in cash. Two alternative interpretations of this transaction are (1) a price of $51,726 with 6 percent interest and (2) a price of $39,380 with 18 percent interest. Which interpretation would you expect each party to prefer? Why?
- If I have a machine that I purchased for $50,000. I'be recorded depreciation of $28,000. I sell the machine for $25,000. how would I record the sale? How would MY entry change if I sold the machine for $15,000 rather than $25,000?Renata purchases a building and land for a lump sum price of $1,000,000. Renata hires an appraiser that determines a fair market value for the land $325,000 and the fair market value of the building is $725,000. What is Renata's basis in the land and the building? OLand $300,000 and building $700,000 OLand $310,000 and building $690,000. OLand $325,000 and building $725,000 OLand $325,000 and building $$675,000Answer the question based on what you have learned on a legal basis. Facts: You offered to sell your automobile to Wil for P100,000.00. After inspecting the automobile, Wil offered to buy it for P80,000.00. This offer was accepted by you. The next day, you offered to deliver the automobile, but Wil being short of funds, secured postponement of the delivery, promising to pay the price “upon arrival of the steamer". The steamer however never arrived because it was wrecked by a typhoon and sank somewhere off the Coast of Samar. Question: Is there a perfected contract in this case? Why or why not? Answer: