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W Which of the following would be classified as soft costs? Oa) Joan purchased a rental property and incurred legal fees of about $1,000 associated with the purchase of the property. Ob) Alicia incurred legal fees associated with the purchase of her rental property which she was renovating to make it more suitable for renting. Oc) Robert who bought a rental property under construction incurred additional interest cost from the use of his line of credit to pay for the renovations. d) Russell who purchased a rental building and incurred costs for property taxes and mortgage interest.

W Which of the following would be classified as soft costs? Oa) Joan purchased a rental property and incurred legal fees of about $1,000 associated with the purchase of the property. Ob) Alicia incurred legal fees associated with the purchase of her rental property which she was renovating to make it more suitable for renting. Oc) Robert who bought a rental property under construction incurred additional interest cost from the use of his line of credit to pay for the renovations. d) Russell who purchased a rental building and incurred costs for property taxes and mortgage interest.

FINANCIAL ACCOUNTING
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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4 Which of the following would be classified as soft costs? a) Joan purchased a rental property and incurred legal fees of about $1,000 associated with the purchase of the property. Ob) Alicia incurred legal fees associated with the purchase of her rental property which she was renovating to make it more suitable for renting. c) Robert who bought a rental property under construction incurred additional interest cost from the use of his line of credit to pay for the renovations. d) Russell who purchased a rental building and incurred costs for property taxes and mortgage interest. Minutes remaining : 112 Previous Question Next Question View Summary and Submit
Transcribed Image Text:4 Which of the following would be classified as soft costs? a) Joan purchased a rental property and incurred legal fees of about $1,000 associated with the purchase of the property. Ob) Alicia incurred legal fees associated with the purchase of her rental property which she was renovating to make it more suitable for renting. c) Robert who bought a rental property under construction incurred additional interest cost from the use of his line of credit to pay for the renovations. d) Russell who purchased a rental building and incurred costs for property taxes and mortgage interest. Minutes remaining : 112 Previous Question Next Question View Summary and Submit
3 Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the land. Over the years, he has claimed total CCA of $60,000 on the building. This year, he sold the property for $550,000 with $95,000 attributed to the land. Remember to take into account the recapture on the building, the capital gain on the building, and the capital gain on the land. What is the total increase in Max's taxable income as a result of this transaction? a) $60,000 Ob) $125,000 c) $185,000 d) $250,000 Minutes Previous start lion View Summary and Submit
Transcribed Image Text:3 Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the land. Over the years, he has claimed total CCA of $60,000 on the building. This year, he sold the property for $550,000 with $95,000 attributed to the land. Remember to take into account the recapture on the building, the capital gain on the building, and the capital gain on the land. What is the total increase in Max's taxable income as a result of this transaction? a) $60,000 Ob) $125,000 c) $185,000 d) $250,000 Minutes Previous start lion View Summary and Submit
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