Question
The following information relates to the Porter Limited's depreciable assets. Class 1-During 2021, a new office building was acquired at a total cost of
The following information relates to the Porter Limited's depreciable assets. Class 1-During 2021, a new office building was acquired at a total cost of $623,000. it is estimated that the value of the land is $145,000. The building will be used 100 pe residential activities, none of which involve manufacturing. It will be allocated to a sep Class 3-The January 1, 2021 balance in this Class was $798,000. During 2021, one- warehouses in this Class burned to the ground. It had a capital cost of $150,000. Insu proceeds totaled $185,000. Class 8-The January 1, 2021 balance in this Class was $346,000. During 2021, the acquired Class 8 assets at a cost of $105,000. Class 8 assets with a capital cost of $8 sold for proceeds of $75,000. None of the individual assets sold had proceeds that ex individual capital cost. Class 10- The January 1, 2021 balance in this Class was $150,000. During 2021, 3 p vehicles were acquired at a cost of $25,000 each. In addition, a delivery van with a ca $42,000 was sold for $18,000. Class 10.1 The January 1, 2021 balance in this Class was $17,850. The only asset i was the CEO's $350,000 Bentley. At the instructions of the Company's directors, who vehicle was excessively extravagant, the car was sold for $275,000 during 2021. Class 13-The January 1, 2021 balance in this Class was $42,500, reflecting improve were made in 2011, the year in which the lease commenced. These improvements we property leased as office space for the Company's executives. The basic lease term is with an option to renew for a period of 2 years. Additional improvements, costing $40,0 made during 2021. Class 53-The January 1, 2021 balance in this Class was $63,000. The capital cost of in this Class was $84,000. As the Company has found its manufacturing operations to unprofitable, all of these assets were sold during 2020. The proceeds totaled $51,000. individual assets sold had proceeds that exceeded their individual capital cost. 80 34 E R 20 2 % 5 T &7 Y U D F G H 8 J C V B N M K
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