What is cost basis of go-cart track for depreciation purpose

Assignment Help Financial Accounting

Reference no: EM131284699

You pay $700,000 for a house and the land that it is on. The land is valued at $270,000 and the house is valued at $430,000. You decide to demolish the house ($30,000 demolition cost) and build a go-cart track at a cost of $750,000.

What is the cost basis of the go-cart track for depreciation purposes?

Reference no: EM131284699

Questions Cloud

Prepare the horizontal model to record collection of note : Agrico, Inc., accepted a 10-month, 13% (annual rate), $4,050 note from one of its customers on May 15, 2016; interest is payable with the principal at maturity. Prepare the horizontal model to record the interest earned by Agrico during its year ende..

Schedules of disbursements : Two alternative courses of action have the following schedules of disbursements. The first alternative spends $1,300 now and no more. The second does not spend anything now but one year later spends $100, the following year an additional $200 and $30..

What are the financial risks to healthcare organizations : What are the financial risks to healthcare organizations? What role do the accountants play in risk management? Why is it important to hire accountants that understand the unique needs of a healthcare organization?

Pay operating costs of the facility without borrowing : What is the purpose of the cash budget? How did you determine the minimum level of cash reserves needed to pay operating costs of the facility without borrowing?

What is cost basis of go-cart track for depreciation purpose : You pay $700,000 for a house and the land that it is on. The land is valued at $270,000 and the house is valued at $430,000. You decide to demolish the house ($30,000 demolition cost) and build a go-cart track at a cost of $750,000. What is the cost ..

What is kens tax basis in the partnership : Fact Pattern for tax year 2015. Prepare Ken & Casey 's Form 1040 tax return (use tax year 2015 forms) up to Line 43 ''Taxable Income" only and all necessary schedules & forms . DO NOT CALCULATE TAX LIABILITY. What is Ken's tax basis in the partnershi..

Prepare the bank reconciliation : Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information: The June 30 balance shown on the bank statement is $5,796. Outstanding checks at June 30 totaled $330. Prepare the bank reconciliation for Show Me, Inc., a..

Prepare the adjusting journal entry : Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

Distinguish between personal and professional judgment : Distinguish between personal and professional judgment. Logically present arguments to justify the use of professional judgment in resolving accounting ethics dilemmas.

User Account

All Pages