Company X has office buildings with a historic cost of $800,000 and accumulated depreciation of $150,000. They use the straight line method of depreciation. The buildings have an expected life of 20 years and a scrap value of $200,000. If the buildings are sold for $600,000. Which of the following statements is true? Answers: a) There has not been a profit or loss on sale b) There has been a loss on sale of $200.000 c) There has been a profit on sale of $150,000 d) There has been a loss on sale of $50,000

Company X has office buildings with a historic cost of $800,000 and accumulated depreciation of $150,000. They use the straight line method of depreciation. The buildings have an expected life of 20 years and a scrap value of $200,000. If the buildings are sold for $600,000. Which of the following statements is true? Answers: a) There has not been a profit or loss on sale b) There has been a loss on sale of $200.000 c) There has been a profit on sale of $150,000 d) There has been a loss on sale of $50,000

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 6MCQ: Which of the following is not true about the MACRS depreciation system: A salvage value must be...

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