Joan sold depreciable property used in her business to Irene for $325,000 cash plus a ten year bond par value $200,000, and currently trading on the NYSE for $196,000. The property cost Joan $605,000 not including the $27,000 of capital improvements she made. During Joan’s ownership she erroneously deducted $315,000 of depreciation on the property and no depreciation on the improvements. The correct amount of depreciation that should have been deducted was $420,000 on the property and $12,000 on the improvements Determine the amount of recognized gain or loss.
Joan sold depreciable property used in her business to Irene for $325,000 cash plus a ten year bond par value $200,000, and currently trading on the NYSE for $196,000. The property cost Joan $605,000 not including the $27,000 of capital improvements she made. During Joan’s ownership she erroneously deducted $315,000 of depreciation on the property and no depreciation on the improvements. The correct amount of depreciation that should have been deducted was $420,000 on the property and $12,000 on the improvements Determine the amount of recognized gain or loss.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 52P
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Joan sold
bond par value $200,000, and currently trading on the NYSE for $196,000. The property cost
Joan $605,000 not including the $27,000 of capital improvements she made. During Joan’s
ownership she erroneously deducted $315,000 of depreciation on the property and no
depreciation on the improvements. The correct amount of depreciation that should have been
deducted was $420,000 on the property and $12,000 on the improvements
Determine the amount of recognized gain or loss.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT