Question
A residence was constructed in 1986 for $72,000 on a lot that cost $14,000. Before the property was converted to rental use in the current
A residence was constructed in 1986 for $72,000 on a lot that cost $14,000. Before the property was converted to rental use in the current year, a finished porch costing $8,000 was added and a $3,000 casualty loss was claimed. If the fair market value on the date of conversion to rental use was $84,000 ($74,000 for the house and $10,000 allocated for the land), what is the depreciable basis?
- A.$84,000
- B.$74,000
- C.$72,000
- D.$77,000
During the current year, Liquid Corporation, a calendar-year taxpayer, purchased and placed in service the following assets on the following dates:
| Machine | $ 6,400 | February 1 |
| Truck | 20,000 | October 15 |
| Computer | 8,000 | December 1 |
The three assets are all 5-year property under MACRS. The Sec. 179 and bonus depreciation deductions were not elected. What is Liquids depreciation deduction?
- A.$1,720
- B.$3,440
- C.$6,880
- D.$3,640
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
16th edition
134475585, 978-0134475998, 134475992, 978-0134475585
