Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show steps and dont use computer Upon graduation, Mr. Maximiliem Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called

image text in transcribed

image text in transcribed

please show steps and dont use computer

Upon graduation, Mr. Maximiliem Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called "BAD Company Investments," with a potential purchase of a 40-unit apartment building in Stillwater close to the OSU campus. Before signing the contract BAD Company Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $500,000 for the land and $1,500,000 for the apartment building for a total of $2,000,000. If the purchase takes place in June, and assuming BAD Company Investments plans to sell the apartment building in March of the fourth year, answer questions 1 - 4 below. (10) B 3. Using MARCS, what is the depreciation write-off for year 4 (d)? A. $ 7,500 B. $11,400 C. $15,200 D. $18,700 (10) D 4. Using MACRS, what is the book value at the time the property is sold in year four (B4)? A. $1,800,000 B. $1,750,000 C. $1,575,000 D. $1,350,000 Upon graduation, Mr. Maximiliem Barton, Mr. Ali Almahfoudh, and Mr. Zachary Dallen decide to form an LLC called "BAD Company Investments," with a potential purchase of a 40-unit apartment building in Stillwater close to the OSU campus. Before signing the contract BAD Company Investments wants to determine the depreciation for the property using the MACRS depreciation method. The asking price is $500,000 for the land and $1,500,000 for the apartment building for a total of $2,000,000. If the purchase takes place in June, and assuming BAD Company Investments plans to sell the apartment building in March of the fourth year, answer questions 1 - 4 below. (10) B 3. Using MARCS, what is the depreciation write-off for year 4 (d)? A. $ 7,500 B. $11,400 C. $15,200 D. $18,700 (10) D 4. Using MACRS, what is the book value at the time the property is sold in year four (B4)? A. $1,800,000 B. $1,750,000 C. $1,575,000 D. $1,350,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Finance

Authors: Scott Besley, Eugene F. Brigham

6th edition

9781305178045, 1285429648, 1305178041, 978-1285429649

More Books

Students also viewed these Finance questions

Question

=+buy 100 yen, what are the nominal and real exchange rates?

Answered: 1 week ago