Computing the cost recovery deduction

Assignment Help Accounting Basics
Reference no: EM13142505

Doug purchased a new factory building on January 15, 1987, for $4,000,000. On March 1, 2009, the building was sold. Determine the cost recovery deduction for the year of the sale assuming he did not use the MACRS straight-line method.

A) $0.

B) $15,870.

C) $26,450.

D) $126,960.

E) None of the above.

Reference no: EM13142505

Questions Cloud

What amount is reportable as interest income : Elsie, Elmer's wife, did not own any of the Virginiana Mutual Fund shares, but she did receive $175 in interest on a savings account at the Moss National Bank and $1,475 in interest on California Municipal Bonds. Elmer and Elsie filed a joint inco..
Total dollar amount of discount or premium amortization : Calculate the total dollar amount of discount or premium amortization during the first year (5/1/04 through 4/30/05) these bonds were outstanding. (Show computations and round to the nearest dollar.)
What is the final volume : An oxygen tank contains oxygen at a pressure of 70 kPa. When the pressure drops to 36 kPa, the temperature increases from 300 K to 350 K. If the initial volume is 9 L, what is the final volume?
What is amount of outstanding checks at the end of november : In the month of November, Hickcox Company Inc. wrote checks in the amount of $9,072. In December, checks in the amount of $11,987 were written. What is amount of outstanding checks at the end of November?
Computing the cost recovery deduction : Doug purchased a new factory building on January 15, 1987, for $4,000,000. On March 1, 2009, the building was sold. Determine the cost recovery deduction for the year of the sale assuming he did not use the MACRS straight-line method.
Classifications within net income : Discuss how the authoritative literature addresses comprehensive income. Define three classifications within net income and give an example of each.
Which computes its inventory under the dollar-value lifo : You assemble the following information for Dillon Department Store, which computes its inventory under the dollar-value LIFO method.
How many calories were absorbed by the water : 175g of water was heated from 15c to 88c. how many calories were absorbed by the water
What are the implications of such complete harvest : Slash-and-burn agriculture has been practiced for millennia in tropical countries throughout the world. In this form of agriculture, some timber may be harvested from tropical forests prior to their conversion to agricultural use, but most of the ..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Maximum internal control over purchasing

What segregation of duties would you recommend to attain maximum internal control over purchasing activities in a manufacturing concern? (250 word minimum)

  How might that business be operated

Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Assume you are opening a small food outlet across the street from your cam..

  What do you think is the more accurate basis of accounting

What do you think is the more accurate basis of accounting?

  Average costs and variable costs

What problems are associated with using the average cost per unit as a performance measure? What problems are associated with using the variable cost per unit as a performance measure?

  Examine this project form the parents perspective

A US multinational is contemplating a production facility in the UK. The production will be sold locally in the UK. The cost of the facility is estimated at $100,000,000 USD. 100% of the project will be financed through parent equity. The US corpo..

  Assets and liabilities of current year

On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of owner's equity (John Wong's ..

  What are some of the differences in requirements

What are some of the difference between the preparation of fund-basis financial statements and the preparation of the government-wide statements. What are some of the differences in requirements? When is each used and who is the audience for each?

  Company horizon value

What is the company's horizon value (i.e., its value of operation at year 3)? What is its current value of operations (i.e., at Time 0)?

  What is x taxable gain on the transfer

X transferred property to an LLC and received a 25% interest in the partnership profits, losses, and capital. X's basis in the property was $200 and it was subject to a nonrecourse mortgage for $500.

  Budget for production period

Antawn expects to sell 42,000 units of finished goods this period-How many units must he budget for production this period

  How many ticket packages will george need to sell

George plans to sell his customers a special for a ski package weekend. He is able to purchase the package from the providers for $175 each. The ticket packages will be sold for $225 each and the ski resort and lodging facilities intend to reimbur..

  Performance measures and transfer pricing

Explain the advantages and disadvantages of each set of performance measures. How do they must design the organizational architecture to control the agency problems?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd