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Utilities 1,500
Maintenance and repairs 450
Depreciation (business part only) 1,500
43. Janet purchased her personal residence in 2000 for $250,000.
In January 2009 she converted it to rental property. The fair
market value at the time of conversion was $210,000.
a. Determine the amount of cost recovery that can be taken in
2009:
b. Determine the amount of cost recovery that could be taken in
2009 if the fair market value of the property were $350,000:
Chapter 7
49. Ricardo acquired a warehouse for business purposes on
August 30, 1992. The building cost $200,000. He took $133,333 of
depreciation on the building, and then sold it for $350,000 on July
1, 2009. What is the amount and nature of Ricardo’s gain or loss
on the sale of the warehouse?
51. In 2009, Juanita sold stock considered short-term for a gain of
$875 and stock considered long-term for a loss of $2,400. She also
had a $2,000 short-term loss carryover from 2008 and a $240
long-term loss carryover from 2008.
What amount will be shown as a short-term gain (loss) for 2009?
What amount will be shown as a long-term gain (loss) for 2009?
c. Will there be a carryover to 2010? If so, what is the nature and
amount of the carryover?
Chapter 8