Question: In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47,000 and the original cost was $50,000. Insurance proceeds

In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47,000 and the original cost was $50,000. Insurance proceeds of $55,000 were received for the market value in 2019. Pursuant to S.13(4), the taxpayer elected to defer the recapture. A new building was built in 2020 at a cost of $60,000. How much is the amended recapture in 2020?

Multiple Choice

$0
$13,000
$3,000
$8,000

Step by Step Solution

★★★★★

3.50 Rating (150 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The detailed answer for the above question is provided below The recapture amount is calculated as ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Multiple Choice Questions 1. A single taxpayer is 27 years old and has wages of $17,000 and interest income of $450. Which is the simplest tax form this person can file? a. 1040. b. 1040EZ. c. 1040A....

Multiple choice questions: 1. A 58-year-old taxpayer retires this year and receives the first payment on an annuity that was purchased several years ago. The taxpayers investment in the annuity is...

A fire destroyed a company's detailed stock records and much of the merchandise held in stock. The company accountant was able to discover that stock at the beginning of the period was 40,000,...

Help Save & Exit Sutma In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47.000 and the original cost was $50,000. Insurance proceeds of $55.000 were received for the...

In 2019 a storage facility was destroyed in a fire. The UCC of the building was $47,000 and the original cost was $50,000. Insurance proceeds of $55,000 were received for the market value in 2019....

Verizon Communications Initial Financial Position (30 November 2023): Creditors: $3,200,000 Equipment: $13,000,000 Motor vehicle: $7,000,000 Stock of goods: $10,000,000 Debtors: $7,500,000 Cash at...

CONTINUING PROBLEM This chapter will require you to record and post the purchases and cash A month has elapsed since Precision Computer Centre's year-end. Tony Freedman will use four specialized...

QUESTION: how to design a system that would allow comparisons of village performance, despite each village having quite different operating characteristics. Could a consistent set of measures be...

Question MC 1 (43 minutes) [Chapters 2 to 8] Determine the single most appropriate response to the following questions. 1)Carla lives in Detroit, Michigan, USA. She commutes daily to Windsor,...

Directions: Answer the following questions 1. Why is variance important? 2. How do we compute a variance? 3. What is the difference between variance and standard deviation?

What is the relationship between trauma and homelessness (and other social determinants of health)?

At December 3 1 , 2 0 2 5 , the available for - sale debt portiolio for Sarasota, lice is as follows. \ table [ [ Security , Cost,Fair Value,Unrealized Gain ( Loss ) ] , [ A , $ 2 0 , 1 2 5 , $ 1 7 ,...

kristens ice cream institution makes $250 profit on each ice cream cup and $300 profit on each shake on a typical summer weekday, kristen sells at least 100 ice cream cups however it has never sold...

()- 2. Let a1 and b = . Determine whether 6 is a linear -> combination of a1, a2.

1 1 1. Let a1 a2 3 and az 1 1 3 i. Let b (-1, 9, - 4)'. Verify whether 2a1 - 9, 3a2 b. ii. Let b (3, 6, 6). Verify whether ai 2a2 b. | iii. Let b (2, 7, 7)'. Verify whether aj 2a2 + az b.

what is polymorphism in object oriented programming? is it really needwhat is product- service bundling? describe it with an example .what are its benefits to customers.please no plagiarism .write in...

Buy verified Paypal Accounts - PayPal Verification Process Explained (2025 Update) PayPal Verification Process Explained (2025 Update) Digital finance has become the backbone of global commerce, and...

Andrew English has agreed to play professional soccer with the Toronto Metros of the Canadian Soccer League. Andrew lives in England and will be resident in Canada only for the five months of the...

Stuart presents to you the following information concerning tuition fees paid for 2010, 2011, and 2012. REQUIRED Discuss the tax implications of the above tuition fee payments. 2010 Harvard...

For each of the following items, identify the appropriate provision of the Act which deals with the item listed. Be as specific as possible in citing the reference to the Act, i.e., Part, Division,...

T F Most people with multiple personalities had normal and uneventful childhoods. (p. 214)

T F The term hysteria derives from the Greek word for testicle. (p. 225)

1. Why should we not accept claims of recovered memories at face value? A high-level business executives comfortable life fell apart one day when his 19-year-old daughter accused him of having...