4. Heather owns a two-story building. The building is 40% business and 60% personal use. During...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
4. Heather owns a two-story building. The building is 40% business and 60% personal use. During the current year, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of 100,000 on the business portion. At the time of the fire, the building had a fair market value of $900,000. Immediate after the fire the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed. Heather's AGI prior to considering the casualties is $100,000. a. What is the amount of Heather's casualty loss? b. What is the amount of the portion of the casualty gain or loss. allocated to her business? c. What is the amount of her personal casualty loss deduction and is it deductible? 4. Heather owns a two-story building. The building is 40% business and 60% personal use. During the current year, a fire caused major damage to the building and its contents. Heather purchased the building for $800,000 and has taken depreciation of 100,000 on the business portion. At the time of the fire, the building had a fair market value of $900,000. Immediate after the fire the fair market value was $200,000. The insurance recovery on the building was $600,000. The contents of the building were insured for any loss at market value. The business assets had an adjusted basis of $220,000 and a fair market value of $175,000. These assets were totally destroyed. The personal use assets had an adjusted basis of $50,000 and a fair market value of $65,000. These assets were also totally destroyed. Heather's AGI prior to considering the casualties is $100,000. a. What is the amount of Heather's casualty loss? b. What is the amount of the portion of the casualty gain or loss. allocated to her business? c. What is the amount of her personal casualty loss deduction and is it deductible?
Expert Answer:
Answer rating: 100% (QA)
Answer Explanation i The amount of Heathers casualty loss i... View the full answer
Related Book For
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young
Posted Date:
Students also viewed these accounting questions
-
Comb Corporation transfers assets with an adjusted basis of $300,000 and a FMV of $400,000 to Turkey Corporation in exchange for $400,000 of Turkey Corporation stock as part of a tax-free...
-
Broom Corporation transfers assets with an adjusted basis of $300,000 and an FMV of $400,000 to Docker Corporation in exchange for $400,000 of Docker Corporation stock as part of a tax-free...
-
The plan view below is for a two story building with a height of 15 ft. per floor. The first floor live load is 40 psf and the roof live load of 25 psf. A. Calculate the reduced live load at column B...
-
Describe the value paradox: the economics of diamonds and water.
-
Solve each formula for the quantity given. 1. v = s/t for s 2. a = v/t for v 3. w = mg for m 4. F = ma for a 5. E = IR for R 6. V = lwh for w 7. Ep = mgh for g 8. Ep = mgh for h 9. v2 = 2gh for h 10....
-
On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow. INSTRUCTIONS 1. Record the transactions on page 1 of the general...
-
Why parties may wish to arbitrate a claim?
-
Gonzalvo Corporations balance sheet at the end of 2013 included the following items. The following information is available for 2014. 1. Treasury stock was purchased at a cost of $13,200. 2. Cash...
-
8 . If you take a material and convert it to a different Rockwell scale using a chart, would this be accurate? What are some sources of error, if any? Check one material by converting the Rockwell...
-
Apple is considering a replacement machine that has a cost of $25,000.The new machine will permit output expansion, so annual revenues are estimated at $5,000 during its operating period.The new...
-
Identify their 2020 product mix and target market for a main stream Restaurant (before COVID) and write this in the top-left box of the table. This shows where they had Market Penetration Next,...
-
In what ways does organizational culture influence employee behavior and decision-making processes, and how can organizations leverage cultural alignment to enhance employee engagement, commitment,...
-
You just started in a new position as a leader. The desk files you received when you started this job are full of documents going back a couple of years. In fact, you noticed last week that the file...
-
A Solid rock suspended by a spring scale, has a measured mass of 9 kg. When placed completely in water(density of 1000 kg m3 ) the scale read 3.3 kg. What is the density of the rock?
-
Consider a pressure versus volume graph, where the different curves represent different processes done on a gas. Starting at the origin to point 1, the pressure and volume are increased to 2736 Pa...
-
Use the writeln() method of the document object to display the user agent in a tag in the webpage. Hint: The userAgent property of the window navigator object contains the user agent. 1 Demo 2 4 k!...
-
Seneca college wants to set a new building for a new program, Artificial Intelligence. The building will have Faculty, Registrar, Secretaries, and Students divisions. You are an IT Technician, have...
-
Create an appropriate display of the navel data collected in Exercise 25 of Section 3.1. Discuss any special properties of this distribution. Exercise 25 The navel ratio is defined to be a persons...
-
Kim Corporation, a calendar year taxpayer, has manufacturing facilities in States A and B. A summary of Kims property holdings follows. Determine Kims property factors for the two states assuming...
-
Describe the nature and purpose of the following taxes: a. Severance taxes. b. Franchise taxes. c. Occupational fees. d. Customs duties. e. Export duties?
-
During 2014, Susan, age 49, incurred and paid the following expenses for Beth (her daughter), Ed (her father), and herself: Surgery for Beth...
-
Derive \(C\) and \(\phi\) to verify Equations 3.38 and 3.39 . C = x(0) - B COS (3.38) [(0) + [x(0) B]wn - Bw = tan (3.39) [x(0) - B]wd
-
For each case in Table 3.2, for the governing equation \(\ddot{x}+2 \zeta \omega_{n} \dot{x}+\omega_{n}^{2} x=A \cos \omega t\), evaluate \(C\) and \(\phi\), and \(B_{1}\) and \(B_{2}\) in Equation...
-
Derive Equations 3.44 and 3.45: \[ \begin{aligned} |G(i \omega)| & =\frac{1}{k \sqrt{\left(1-\left(\omega / \omega_{n} ight)^{2} ight)^{2}+\left(2 \zeta \omega / \omega_{n} ight)^{2}}} \\ \phi &...
Study smarter with the SolutionInn App