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geniusboy [140]
3 years ago
8

When Marcus sent his daughter to college, he purchased a house near campus for $95,000. Empty lots in the area sold for approxim

ately $10,000 at the time. After she graduated, Marcus decided to keep the house for use as a rental. The fair market value at the time of the conversion was $160,000 and the price of the land had risen to $20,000. The basis for depreciation of the house is __________.(A) $85,000(B) $95,000(C) $105,000(D) $140,000
Business
1 answer:
Ugo [173]3 years ago
5 0

Answer:

correct answer is (A) $85,000

Explanation:

given data

purchased house = $95,000

Empty lots area sold = $10,000

fair market value = $160,000

land price rise = $20,000

solution

we can say here that fair market value is more than the fair preface of home

so adjusted introduce will be explanation behind weakening

and

basis depreciation of the house will be

basis depreciation of the house = $95000 - $10000

basis depreciation of the house = $85000

so correct answer is (A) $85,000

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Answer:

B. expressed as a percentage of sales.

Explanation:

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2 years ago
a 1000 par value 18-year bond with annual coupons is bought to yield an annual effective rate of 5%. the amount for amortization
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The book value of the bond at the end of year 10 is 1,160

What is the basis for determining premium amortization?

The bond premium amortization is assumed to be determined using the straight-line basis such that bond premium amortized in each year is the same for 18 years of bond investment, in other words, the year 10 bond premium amortization of 20 is the same for all other years.

Total premium on bond issuance=20*18

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Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

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