As oné Bulnaings in Britain nas been vacant for over a year already, how should management account for this property? Investment property b. Noncurrent asset held for sale c. Property and equipment d. Abandoned property а.
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ACCOUNTING FOR INVESTMENT PROPERTY.PROBLEM 2. PLEASE ANSWER AND SHOW SOLUTION
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- Question 17 Home Builder Supply, a retailer in the home improvement industry, currently operates seven retail outlets in Georgia and South Carolina. Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $15,000 on market research to determine the extent of customer demand for the new store. Now Home Builder Supply must decide whether to build and open the new store. Which of the following should be included as part of the incremental earnings for the proposed new retail store? a. The original purchase price of the land where the store will be located. b. The cost of demolishing the abandoned warehouse and clearing the lot. c. The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of…MN.51. Henrietta, the owner of a very successful hotel chain in the Southeast, is exploring the possibility of expanding the chain into a city in the Northeast. She incurs $46,000 of expenses associated with this investigation. Based on the regulatory environment for hotels in the city, she decides not to expand. During the year, she also investigates opening a restaurant that will be part of a national restaurant chain. Her expenses for this are $50,000. She proceeds with opening the restaurant, and it begins operations on May 1. Determine the amount that Henrietta can deduct in the current year for investigating these two businesses. In your computations, round the per-month amount to the nearest dollar and use rounded amount in subsequent computations. b. The deductible amount of investigation expenses related to opening a restaurant:Instacart Inc. needs 30,000 square feet of usable office space. There’s an office building in prime location in Inland Empire that has exactly the square footage it needs located on its top floor. The top floor has 100,000 square feet of rentable space, of which 50,000 square feet is currently used by other tenants. The rent that the landlord is charging is $8 per square foot per year.(a) If Instacart is UNAWARE of any areas that are shared (a.k.a. common) by the tenants on the top floor (such as hallways, restrooms, lounge areas), it would expect to pay rent on ____ square feet of space which would result in ____ in total annual rent due. (b) Now, assume that Istacart IS AWARE of common areas on the top floor. It is also aware that in this case the landlord would be charging all the tenants on the floor their prorated share of rent for those areas. In this case, Instacart would expect to pay rent on ____ square feet of space which would result in ____ in total annual rent due.
- Problem 13-89 (LO. 8, 9) Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ownership, she occupied it as her principal residence. During the past two years, she was in graduate school and rented the residence. After graduate school, Missy returned to the same location where she previously worked. At this point, she purchased another residence for $400,000 and listed her old residence for sale at $340,000. Due to a slow real estate market, 11 months later Missy finally receives an offer of $330,000. If an amount is zero, enter "0". a. What is Missy's recognized gain if she immediately accepts the $330,000 offer (i.e., 11 months after the listing date)? Selling expenses are $20,000.$fill in the blank 1d5578f9f00007b_1 b. What is Missy's recognized gain if she rejects the $330,000 offer and accepts another offer of $340,000 three months later (i.e., 14 months after the listing date)?$fill in the…Bryan Mills has a very particular set of skills required across many parts of the world. Bryan owned a condo in Toronto, a ski chalet in Whistler, BC, and a villa in Malta, Europe until June 15, 2017 when he sold all three properties and moved into a seniors’ residence. He provided the following information with respect to the properties: Property Year Acquired Cost Selling Price (net of commission and other selling costs) Toronto 2011 $400,000 $480,000 Malta 2012 $200,000 $265,000 Whistler 2014 $300,000 $356,000 For the years that Bryan owned each property, he ordinarily inhabited it at some time in the year. He tended to spend the months of January to April in Malta and split the remainder of the year between his condos in Toronto and Whistler. Determine the minimum taxable capital gain to be reported by Bryan on the sale of the three properties. Explain how would the answer change if Bryan had moved out of the Toronto condo in 2013 when it…Selling a plant, income taxes. (CMA, adapted) The Cook Company is a national portable building manufacturer. Its Benton plant will become idle on December 31, 2017. Mary Carter, the corporate controller, has been asked to look at three options regarding the plant:
- Jackie inherited an empty warehouse from her mother in August 1992. Her mother had originally bought it in November 1986 for $40,000. It was worth $110,000 when Jackie inherited it. In 2020 Jackie spent $450,000 to convert the building into two apartments.What is the cost base (excluding indexation) of the building, if Jackie were to sell the two apartments today? a. $40,000 b. $490,000 c. $560,000 d. $450,000ryan Mills has a very particular set of skills required across many parts of the world. Bryan owned a condo in Toronto, a ski chalet in Whistler, BC, and a villa in Malta, Europe until June 15, 2017 when he sold all three properties and moved into a seniors’ residence. He provided the following information with respect to the properties: Property Year Acquired Cost Selling Price (net of commission and other selling costs) Toronto 2011 $400,000 $480,000 Malta 2012 $200,000 $265,000 Whistler 2014 $300,000 $356,000 For the years that Bryan owned each property, he ordinarily inhabited it at some time in the year. He tended to spend the months of January to April in Malta and split the remainder of the year between his condos in Toronto and Whistler. Determine the minimum taxable capital gain to be reported by Bryan on the sale of the three properties. Explain how would the answer change if Bryan had moved out of the Toronto condo in 2013 when it…Yas.8 Eve acquired a personal residence in 20x0 for $700,000. In January, 20x5, when the fair market value was $800,000, she converted the residence to rental property. (Ignore any allocation to land.) a) Calculate the amount of cost recovery that can be taken in 20x5. b) What would your answer be if the property were worth only $50,000 in 20x5?
- (a) On 1/4 / 20Χ0, in one of the two large machines used by company X, its gears broke, creating large internal damages.On 10/4 / 20Χ0 the company bought with cash a new machine costing 182,500 € so that the production could continue.On 1/5/20X0 the old machine was sold to a company abroad for 24,000 €. X spent € 3,000 to clean and move the machine before sending it by ship, while transportation by ship cost another € 1,000. The specific expenses were paid in cash.The relevant diary entries are requested knowing in addition that on 1/1 / 20X0 the data of X showed the following for the old machine:• Acquisition Cost € 90,000Accumulated depreciation € 63,000• Years of useful life: 20 years• Residual value: 0 €Depreciation method followed: StableRandy rents commercial warehouses to various businesses. He purchased a warehouse in May of the current year. The cost of the warehouse was $250,000 The depreciation for the current year will be $ (rounded to the nearest dollar). If Randy continues to rent the warehouse for the next 40 years, the depreciation in the 40th year he owns the warehouse will be $ . (Please refer to the tables at the end of the chapter for the MACRS depreciation rates for this problem.) Please dont use any AI. It's strictly prohibited. Help me asap please.QUESTION 4 Joseph Giovine owns a successful hole-in-the-wall bagel shop called Peach Tree Bagels. Joseph wants to expand the shop by leasing the space next door for $1,000 per month and adding tables and chairs so that customers can dine in. He figures that the tables and chairs will cost $5,000 and that the bagel machine, which cost $4,500 five years ago, will have to be scrapped in favour of a larger machine costing $7,400. He thinks sales will increase by $5,500 per month. Variable costs are 55% of sales. A. What are the relevant costs and benefits of expanding into the new space? B. What are the irrelevant costs and benefits of expanding into the new space?