Discuss loss of rental income and damage to property

Assignment Help Accounting Basics
Reference no: EM131810536

One of your client BC LLC bought an apartment complex on 01/01/2004. Total Cost of apartment including land was $8,726,210. Accumulated Depreciation as of 12/31/2014 was 4,513,597. BC refinanced the entire loan in 2009. Loan origination cost in 2009 was 333,777 and as of 12/31/2014 accumulated loan amortization was 109,934. Mortgage balance on 12/31/2014 was 3, 689,932.

On June 1, 2015 Tornedo hit the apartment complex and caused a considerable damage. Half the units became inhabitable. BC returned the security deposits of the tenants and the tenants moved out. Only half of the units are rented out since July 1, 2015.

The insurance company so far has paid $2.5 million. BC is expected to receive in 2016 $ 1,000, 000 for loss of rental income and damage to property BC paid $721,000 for asbestos removal and paid to 3% of $2.5 million to adjuster. BC also paid 22,000 for environment cleanup.

Reference no: EM131810536

Questions Cloud

What will be the effect on the companys monthly income : If the president is right, what will be the effect on the company's monthly net operating income or loss?
Determining the salvage values and lost productivity : A potential new system costs $12,000 and has the following salvage values and lost productivity for each year.
How much can she consume in mid-january : FIN700 - Financial Management ASSIGNMENT. ow much can she consume in mid-January, 2018 if the capital market offers an interest rate of 8% per year
Result in the lowest equivalent uniform annual cost : He estimates that the annual maintenance cost will be constant at $2500 per year. What service life will result in the lowest equivalent uniform annual cost?
Discuss loss of rental income and damage to property : Tornedo hit the apartment complex and caused a considerable damage. Half the units became inhabitable
Compute the total material variance : The Good Times Company's budget for materials for the year is as follows: The actual number of games produced was 12,000 games.
Data for a new paving machine : Its most economic life is at 8 years, with a minimum EUAC of $62,000. When should the existing paving machine be replaced?
Prepare any necessary journal entries to record : Prepare any necessary journal entries to record the above transactions. Explain why a company might issue a stock dividend? Are stock dividends taxable?
Compute the amount of goodwill recognized : Compute the amount of goodwill recognized, if any, on July 31, 2017.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compute the taxable income for 2013 for aiden on the basis

compute the taxable income for 2013 for aiden on the basis of the following information. aiden is married but has not

  How are the remaining segments reported

A company has 10 industry segments, of which the largest five account for 80% of the combined revenues of the company. What considerations are important in determining the number of segments that are separately reportable and How are the remaining..

  Caruso corporation purchased 35000 shares of common stock

caruso corporation purchased 35000 shares of common stock of howe company as a long-term investment for 700000. during

  Nic saybin enterprises accounting department collects all

nic saybin enterprises accounting department collects all pertinent monthly operating data. selected data is presented

  The company experienced an unrealized decrease in the value

on january 1 2014 hammer company listed the following shareholders equity section of its balance sheetcontributed

  At the beginning of the period the assembly department

at the beginning of the period the assembly department budgeted direct labor of 166500 and property tax of 12000 for

  What controls or programs have reduce risk at healthsouth

View the Aaron Beam video and research the Healthsouth fraud. What controls or programs would have reduce the risk at Healthsouth?

  Kris renewed its liability insurance policy on 1 october

kris inc discovered the followingerrors after the 2008 financial statements were issueda. a major supplier shipped

  Journal entry-impairement of goodwill

Prepared a journal entry (if any) for Blaha Comapany to recorded the impairement of its goodwill at the end of 2004

  Feather friends inc distributes a high-quality wooden

feather friends inc. distributes a high-quality wooden birdhouse that sells for 80 per unit. variable expenses are

  Tis year randy paid 28000 of interest randy also paid

this year randy paid 28000 of interest. randy also paid 2500 of interest on his car loan and 4200 of margin interest to

  Use the straight line method

Question:  San Jose Company issued 5-year $200,000 face value bonds at 105 on January 1, 2012. The stated interest rate on these bonds is 9%. Use the straight line method to complete the amortization schedule given.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd