$2.200 on repairs. Over the years, Alexis has deducted a total of $18,440 for de
ID: 2570822 • Letter: #
Question
$2.200 on repairs. Over the years, Alexis has deducted a total of $18,440 for deprecation 0,000 rental property that ,000. Ill 2006, Alexis spent $12,000 on landscaping and on the property, Compute Alexiss realized and recognized gain or los on the sal 3. Basket Purchase. (Obj. 1) Leo purchased an apartment building,. Leo paid $300,000 in cash, rchased an apartment building. Leo paid $300,000 in cash, assumed a $200,000 mortgage, and paid the following: Brokerage commission $35,000 Attorney's fee to acquire title 2,000 What is Leo's basis for depreciation on this building if the FMV of the land and building are $100,000 and $400,000, respectively?Explanation / Answer
3Ans:
FMV of land and bulding is $500,000
The land and building life span has assumed to be 27.5yrs
Now, calculate stright line depreciation method
(Devide 100% by lifespan of the asset and further divide by 2)
As they have not asked yearwise depreciation i am calculating per yr depreciation for one year.
=Total asset FMV is 100/27.5 = 3.7037%
=3.7%
=3.7/100*500 000
=$18, 500 is depreciation cost per year.
4Ans.
a. Debra sold the shares at $75,000 on Aug 28, 2017, The share value as on her father DOD (12/11/2016)
So $80,000 -$75000 = $5000
Debra is in loss of $5000
b. The current value of share as on June 11, 2017 is $77,000, but she sold the shares at $75,000 in August 28, 2017
So, $77,000 -$75000 = $2000
Debra is in loss of $2000
c. Debra received a stock on August 17,2017 is $79,000 and the value as on her dad's DOD is $80,000
$80,000 - $79,000 = $1000
So, debra is in loss of $1000
d. As on august 17, 2017 the value is 79,000 and the valuse as on July 11, 2017 is $77,000
So $79,000 -$77,000 = $2000
She is in gain of $2000
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