!Required information[The following information applies to the questions displayed below.]On May 17 of year 1 Javier purchased a building, including the land it was on,to assemble his new equipment. The total cost of the purchase was$1,142,000; $342,000 was allocated to the basis of the land and theremaining $800,000 was allocated to the basis of the building. (Use MACRSTable 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediatecalculations. Round your answers to the nearest whole dollar amount.)b. What would be the year 3 depreciation deduction if the building was sold on November 22of year 3?Year 3 depreciation deduction

Depreciation :Depreciation is an accounting method used to allocate the cost of tangible assets over…

Answered: b. What would be the year 3…

Business

Accounting

b. What would be the year 3 depreciation deduction if the building was sold on November 22 of year 3?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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[The following information applies to the questions displayed below.] On December 2 of year 1, Javier purchased a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,620,000; $385,000 was allocated to the basis of the land and the remaining $1,235,000 was allocated to the basis of the building. (Use MACRS Table 1, Table 2. Table 3, Table 4 and Table 5.) Note: Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount. a. Using MACRS, what is Javier's depreciation deduction on the building for years 1 through 3? Depreciation Expense Year 1 Year 2 Year 3
Required information [The following information applies to the questions displayed below.] On January 8 of year 1 Javier purchased and placed in service a building, including the land it was on, to assemble his new equipment. The total cost of the purchase was $1,399,500; $322,000 was allocated to the basis of the land and the remaining $1,077,500 was allocated to the basis of the building. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) a. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3? b. What would be the year 3 depreciation deduction if the building was sold on February 26 of year 3? d. Assume the building is residential property. Using MACRS, what is Javier’s depreciation deduction on the building for years 1 through 3?
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