Evaluate her itemized deduction as a result of the fire

Assignment Help Financial Accounting

Reference no: EM1376530

Heather owns a two-story building. The building is used 60 percent for business use and 40 percent for personal use. During 2011, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of $150,000 on business portion. At the time of the fire, building had a fair market value of $900,000. instantly after the fire, the fair market value was $200,000. The insurance recovery on building was $600,000. The contents of building were insured for any loss at fair market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were completely destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also completely destroyed. If Heather's AGI is $100,000 before considering the effects of the fire, evaluate her itemized deduction as a result of the fire. Also determine Heather's AGI.

Reference no: EM1376530

Questions Cloud

Biographical characteristics a team member needs : Choose a job and give a detailed description of activities to be performed in the job. Next, specify the biographical characteristics a team member requires to have to perform job effectively.

Elucidate how much ten surgeries cost hospital : It costs hospital $5,000 per hour for surgery. Learning rate is 80% also first surgery took 30 hours. Elucidate how long tenth surgery may last.

Find the budgeted direct-labor cost rate : Find the budgeted direct-labor cost rate and find the budgeted indirect-cost rate assuming direct-labor cost is allocation base?

Explain is forecast performing as well as it may : A CPA firm has been using subsequent equation to predict annual demand for tax audits. Demand for past few years is shown below. Is forecast performing as well as it may, Explain.

Evaluate her itemized deduction as a result of the fire : Evaluate her itemized deduction as a result of the fire. Also determine Heather's AGI and heather owns a two-story building. The building is used 60 percent for business use and 40 percent for personal use. During 2011,

Find ending balance in work in process : Pickering producing is working on 2-jobs. Expenses are accumulated under a job order cost system, and overhead is applied on basis of direct labor hours.

Calculate regression equation for preceding demand data : Choose At least four key elements, tools, also/or concepts relevant to operations management also/or duties of an operations manager or operations management. Describe them also elucidate how they relate.

Find what actual amount of manufacturing overhead cost : Find what actual amount of manufacturing overhead cost was incurred during August 2013 and find what amount of manufacturing overhead was allocated to all jobs during August 2013?

Show diversity for a multinational corporation : What are the main problems caused by worldwide accounting diversity for a multinational corporation?

User Account

All Pages