Company purchases a buiding for S100.000, t pays another $5.000 in dosing costs wh the purchase. Later in the yearupon placing the bulding into une. Company pays S500 to have the bulding ceaned Finaly, near the end of the yearCompany pays S25.000 for a physical adtion to the building Ignoring any depreciation what would the value of theTding account be at the end of he year on the balance sheer?$125.000$130.000$130.5000.000

Asset account at the end of the year=Purchase price+Closing Cost+Addition to asset

Company purchae a buiding for S100.000. payn another $5.000 in dosing costs w the purchase upon placing the buding ito une Company pays S00have the bulding deaned Firaly Company pays 000 ora phycaladdtion tothe bulding gnoingany depreciation whtwod Tding accoutbe in the year the end of the yer eofhe end of the nce sheet $125.000 0.000 S130.500

Company purchae a buiding for S100.000. payn another $5.000 in dosing costs w the purchase upon placing the buding ito une Company pays S00have the bulding deaned Firaly Company pays 000 ora phycaladdtion tothe bulding gnoingany depreciation whtwod Tding accoutbe in the year the end of the yer eofhe end of the nce sheet $125.000 0.000 S130.500

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 42P

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