User Account

All Pages

Discuss business casualty losses

Assignment Help Accounting Basics
Reference no: EM131812483

Business Casualty Losses

One of your client BC LLC bought an apartment complex on 01/01/2004. Total Cost of apartment including land was $8,726,210. Accumulated Depreciation as of 12/31/2014 was 4,513,597. BC refinanced the entire loan in 2009. Loan origination cost in 2009 was 333,777 and as of 12/31/2014 accumulated loan amortization was 109,934. Mortgage balance on 12/31/2014 was 3, 689,932.

On June 1, 2015 Tornedo hit the apartment complex and caused a considerable damage. Half the units became inhabitable. BC returned the security deposits of the tenants and the tenants moved out. Only half of the units are rented out since July 1, 2015.

The insurance company so far has paid $2.5 million. BC is expected to receive in 2016 $ 1,000, 000 for loss of rental income and damage to property BC paid $721,000 for asbestos removal and paid to 3% of $2.5 million to adjuster. BC also paid 22,000 for environment cleanup.

Required:

How to account for $2.5 million payment from Insurance Company

How and when to claim expenses for environmental cleanup and asbestos removal

How much depreciation to claim in 2015

 

Reference no: EM131812483

Questions Cloud

Molding department for the month of june : Prepare a production cost report for the Molding Department for the month of June. ROSENTHAL COMPANY Molding Department Production Cost Report
Write a critique of an article on a topic : For this essay, you will write a critique of an article on a topic that also deals with freedom and speech on college campuses
Schedule of cost of goods manufactured : How to prepare a schedule of cost of goods manufactured and cost of goods sold? Beginning WIP 1,600,000 Beginning Raw Materials 775,000
What is the probability that company was a non-union mine : Western Mine Engineering, Inc. conducts surveys to obtain data on the operations of mines in the United States and elsewhere.
Discuss business casualty losses : How and when to claim expenses for environmental cleanup and asbestos removal
Conduct a content analysis and explain its purpose : Explain how quantitative analysiscould be involved in the student's study of media and literature.
Prepare summary journal entries to record : Prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations.
Paper that discusses accounting for partnerships : Prepare a written paper that discusses Accounting for Partnerships. Your paper may cover any subject area relating to Accounting for Partnerships.
Find the sum of the squares of the sample observations : A random sample of size 5 is taken from a normal distribution with mean 0 and standard deviation 2. Find the constant k such that 0.05 is equal.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Bakker corporation applies manufacturing overhead on the

bakker corporation applies manufacturing overhead on the basis of direct labor-hours. at the beginning of the most

  Organization information system

If you had to select one of these categories of systems goals as the most important to the effective operation of an organization's information system, which one would you choose? Explain the reasons for your choice.

  Deviance in public accounting firms

How has public criticism of the Public Accounting Profession contributed to workplace deviance? What solution are there to decrease deviance in public accounting firms? At least 150 words, thanks for your help in this matter.

  Calculate the simple rate of return for the investment

Joetz Corporation has gathered the following data on a proposed investment project - The simple rate of return for the investment

  Acc explain the company’s approach to internal controls

Financial Performance Analysis Select a company and analyze the company’s financial performance, highlighting accounting principles and methods learned in this course. This project requires you to present, review, and analyze the organization’s publi..

  What is the total manufacturing costs assigned to job

Weaver Company's predetermined overhead rate is $18.00 per direct labor-hourand its direct labor wage rate is $12.00 per hour.

  Calculate the dividend refund

Mr. Stevens owns 100% of the shares of Stevens Holdings Inc. (SHI) which owns 100% of Fancy Operating Ltd. (FOL). Calculate the dividend refund for FOL for 2016

  For each of the following 5 conditions insert the

for each of the following 5 conditions insert the appropriate number into each blank to indicate the type of adjusting

  What is the cost of goods sold in given operation

Youngstown Rubber reports the following data for its first year of operation. Direct materials used= $711,000 Cost of goods manufactured= $680,600.

  Kleener company acquired a new delivery truck

Kleener Co. acquired a new delivery truck at the beginning of its current fiscal year. The truck cost $52,000 and has an estimated useful life of four years and an estimated salvage value of $8,000.

  Horizontal analysis of the income statement

As a manager, how will you use the horizontal analysis of the income statement and balance sheet for intracompany comparisons? How do managers and investors use the vertical analysis of the income statement and balance sheet compared to competit..

  Determine the break-even point in units of q and z

The sales mix for products Q and Z is 20% and 80%, respectively. Determine the break-even point in units of Q and Z.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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