A couple of years ago, the company Health4All purchased land, a building, and tw
ID: 2395053 • Letter: A
Question
A couple of years ago, the company Health4All purchased land, a building, and two depreciable assets from another corporation. All of these have recently been disposed. Use the information shown to determine the presence and amount of any capital gain, capital loss, or depreciation recapture.
The capital gain (CG) amount for land is determined to be $ .
The capital loss (CL) amount for building is determined to be $ .
The depreciation recapture (DR) amount for asset 1 is determined to be $ .
The depreciation recapture (DR) amount for asset 2 is determined to be $ .
The capital gain (CG) amount for asset 2 is determined to be $
Asset Purchase Price, $ Recovery Period, Years Current Book Value, $ Sales Price, $ Land –210,000 - - 275,000 Building –800,000 27.5 260,000 255,000 Asset 1 –50,500 3 15,500 18,500 Asset 2 –10,000 3 5,000 11,000Explanation / Answer
The capital gain (CG) amount for land is determined to be $ 275000 - 210000 = 65000 .
The capital loss (CL) amount for building is determined to be $ 255000 - 260000 = - 5000 .
The depreciation recapture (DR=sp exceeds adj cost basis) amount for asset 1 is determined to be $ 18500 - 15500 = 3000 .
The depreciation recapture (DR) amount for asset 2 is determined to be $ 11000 - 5000 = 6000 .
The capital gain (CG) amount for asset 2 is determined to be $ 6000 .
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.