4 questions, accounting

Aug 11th, 2015
Price: $15 USD

Question description

Facts and information listed below is needed to resolve questions 75 and 77: 

On January 1st, Zachary purchased an office building and land (inclusive of acquisition costs) for a total $10,333,000.  Zachary and his advisers determined that the land represented 15% of the total purchase price.  Subsequent to closing, Zachary hire a third party provider to perform a cost segregation study of the building; as a result, $1,000,000 was reclassified to be personal property having a recovery period of 7 years or less.  

75. What would the adjusted tax basis of the building be on December 31st of year 3 (rounded to $1K)?

76. What is the adjusted tax basis of the personal property at the end of year 9 (rounded to $1K)?

77. What would the unrecaptured Section 1250 gain (taxed at the 25% rate) be if the land, building and personal property were sold for 15,333,000 at the end of year 10?  

78. What would be the adjusting journal entry to record the payment of a self amortizing qualified nonrecourse senior first mortgage bearing market interest on a loan that is secured by a data center in Boston, MA?  Please list the account name (description) and whether it would be an increase or decrease to that account / (a debit or a credit – description – and then increase or decrease).

Tutor Answer

(Top Tutor) Daniel C.
School: UT Austin

Studypool has helped 1,244,100 students

Review from our student for this Answer

Aug 14th, 2015
"The best tutor out there!!!!"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors