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Olenka [21]
2 years ago
5

An investor paid $43,000 for a lot and $520,000 to have a strip mall constructed on it. he has depreciated the property for the

past 15 years on a 39-year straight-line schedule. if he sells the property this year and realizes $710,000 after closing expenses, what is his capital gain?
Business
1 answer:
horrorfan [7]2 years ago
7 0
<span>The depreciation of the property over 39 years in a straight-line manner will be 520/39 = 13.333 thousand per year. Since it has been 15 years, the total depreciation to date is 13.333*15 = $200,000. Thus the book value of the building at this time is $520,000 - $200,000 = $320,000 for the building. We add to that the $43,000 book value of the land to get a total value of 320+43 = $363,000. If the property sells for $710,000, then the capital gain is 710-363 = $347,000.</span>
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Wendy, the CEO of an oil drilling company, and her top management team recently discovered that their facilities are damaging a
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Your company was recently served with a lawsuit. The outcome of the litigation will not be determined for several months, but it
klemol [59]

Answer:

According to GAAP,Provide a disclosure on financial statements regarding the pending litigation

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2 years ago
An economy produces 10X, 20Y, and 30Z in a year. Base-year prices for these goods are $1, $2, and $3, respectively. Current-year
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