Carl Purchased a Building Costing $120,000 in 2000 for Use

question 150

Essay

Carl purchased a building costing $120,000 in 2000 for use in his landscape business.In 2009,he built an addition to the building at a cost of $30,000.In 2012,a tornado damaged the building.The cost of repairing the building was $22,000 and Carl's insurance company paid $16,000 of the cost of the repairs.Depreciation deducted on the building for 2000 through 2016 totaled $18,000.What is Carl's adjusted basis in the building at the end of 2016? Explain.

---

Definitions:

Facility Expenses

Costs associated with maintaining and operating a physical location or building, such as rent, utilities, and maintenance.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a specific period or category.

Travel Expenses

Costs associated with traveling for the purpose of conducting business-related activities, including transportation, lodging, and meals.

Spending Variance

The difference between the actual amount spent and the budgeted or standard amount expected to be spent.