10) Brandon, an individual, began business 4 years ago and has sold 1231 assets with 5,450...
10) Brandon, an individual, began business 4 years ago and has sold 1231 assets with 5,450 of losses within the last five years. Brandon owned each of these assets for several years, in the current year, Brandon sold the following business assets:
Asset Original Cost Accumulated Depreciation Gain/Loss
Machinery 30,900 7,900 10,450
Land 49,000 0 24,500
Buiding 108,000 29,000 (14,000)
Assuming Brandon's marginal ordinary income tax is 32% what effect do the gains and losses have on Brandon's tax liability?
The answer is 7,600 1231 Gain, 13,350 ordinary income & 5,412 tax liability
How do you arrive at this answer?
Homework Answers
Add Answer to:
10) Brandon, an individual, began business 4 years ago and has
sold 1231 assets with 5,450...
Please provide a detail step by step explanation of how you broke down the depreciation recapture...
Please provide a detail step by step explanation of how you
broke down the depreciation recapture and solved for the section
1231 gain.
7) Brandon, an individual, began business four years ago and has sold $1231 assets with $5,000 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Asset Original Cost Accumulated Depreciation Gain/loss Machinery $30,000 $7,000 $10,000 Land 40,000 20,000 Building 90,000...
Multiple Choice: I could use a little help. I need some guidance if possible. Brandon, an...
Multiple Choice:
I could use a little help. I need some guidance if possible.
Brandon, an individual, began business four years ago and has sold $1231 assets with $5,750 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Cost $ 31,500 55,000 120,000 Accumulated Depreciation $ 8,500 Asset Machinery Land Building Gain/Loss $ 10,750 27,500 (20,000) 35,000 Assuming Brandon's marginal ordinary income...
(The following information applies to the questions displayed below.) Buckley, an individual, began business two years...
(The following information applies to the questions displayed below.) Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Asset Original Cost Depreciation Gain/Loss Computers $ 6,000 $ 2.000 $ (3,000) Machinery 10,000 4.000 (2.000) Furniture 20,000 12.000 7,000 Building 100,000 10.000 (1.000) Assuming Buckley's marginal ordinary income tax rate is 32...
[The following information applies to the questions displayed below.] Buckley, an individual, began business two years...
[The following information applies to the questions displayed below.] Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Asset Original Cost Depreciation Gain/Loss Computers $ 6,000 $ 2,000 $ (3,000) Machinery 10,000 4,000 (2,000) Furniture 20.000 12.000 7,000 Building 100,000 10.000 (1.000) Assuming Buckley's marginal ordinary income tax rate is 32...
The following information applies to the questions displayed below. Buckley, an individual, began business two years...
The following information applies to the questions displayed below. Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Original Cost $ 6,000 Gain/Loss $ (3,000) Asset Depreciation 2000 Computers Machinery Furniture 10.,000 20,000 4,000 (2,000) 7000 12.000 Building 100,000 10,000 (1,000) Assuming Buckley's marginal ordinary income tax rate is 32 percent,...
Problem 17-37 (LO. 2, 3) Amber Industries (a sole proprietorship) sold three § 1231 assets during...
Problem 17-37 (LO. 2, 3) Amber Industries (a sole proprietorship) sold three § 1231 assets during 2018. Data on these property dispositions are as follows: Asset Cost Acquired Depreciation Sold For Sold On Rack $100,000 10/10/14 $100,000 $145,000 10/10/18 Forklift 35,000 10/16/15 23,000 3,000 10/10/18 Bin 87,000 03/12/17 31,000 60,000 10/10/18 a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter 0. Asset Character of...
Amber Industries (a sole proprietorship) sold three § 1231 assets during 2018. Data on these property...
Amber Industries (a sole proprietorship) sold three § 1231 assets during 2018. Data on these property dispositions are as follows: Asset Rack Forklift Bin Cost $100,000 35,000 87,000 Acquired 10/10/14 10/16/15 03/12/17 Depreciation $100,000 23,000 31,000 Sold For $145,000 3,000 60,000 Sold On 10/10/18 10/10/18 10/10/18 a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter 0. Character of Gain or Loss Total Amount of...
Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years....
Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On date of sale, the business balance sheet showed the following assets: Tax Basis Accounts receivable $ 42,250 Inventory 149,600 Furniture and equipment: Cost 63,750 Accumulated depreciation (51,000 ) Leasehold improvements: Cost 23,000 Accumulated amortization (4,600 ) Required: The purchaser paid a lump-sum price of $316,500 cash for the business. The sales contract stipulates that the FMV of the business inventory is $154,000, and...
Pebble Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago....
Pebble Corporation, an accrual basis taxpayer, has struggled to survive since its formation, six years ago. As a result, it has a deficit in accumulated E & P at the beginning of the year of $340,000. This year, however, Pebble earned a significant profit; taxable income was $240,000. Consequently, Pebble made two cash distributions to Martha, its sole shareholder: $150,000 on July 1 and $200,000 December 31. The following information might be relevant to determining the tax treatment of the...
XYZ is a calendar-year corporation that began business on January 1, 2020.
XYZ is a calendar-year corporation that began business on January 1, 2020. For the year, it reported the following information in its current-year audited income statement. Notes with important tax information are provided below. Use Exhibit 16-6. XYZ corp.BookIncomeIncome statementFor current yearRevenue from sales$40,000,000Cost of Goods Sold(27,000,000)Gross profit$13,000,000Other income:Income from investment in corporate stock300,0001Interest income20,0002Capital gains (losses)(4,000)Gain or loss from disposition of fixed assets3,0003Miscellaneous income50,000Gross Income$13,369,000Expenses:Compensation(7,500,000)4Stock option compensation(200,000)5Advertising(1,350,000)Repairs and Maintenance(75,000)Rent(22,000)Bad Debt expense(41,000)6Depreciation(1,400,000)7Warranty expenses(70,000)8Charitable donations(500,000)9Meals(18,000)Goodwill impairment(30,000)10Organizational expenditures(44,000)11Other expenses(140,000)12Total expenses$(11,390,000)Income before taxes$1,979,000Provision for income...
Please provide a detail step by step explanation of how you
broke down the depreciation recapture and solved for the section
1231 gain.
7) Brandon, an individual, began business four years ago and has sold $1231 assets with $5,000 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Asset Original Cost Accumulated Depreciation Gain/loss Machinery $30,000 $7,000 $10,000 Land 40,000 20,000 Building 90,000...
Multiple Choice:
I could use a little help. I need some guidance if possible.
Brandon, an individual, began business four years ago and has sold $1231 assets with $5,750 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Original Cost $ 31,500 55,000 120,000 Accumulated Depreciation $ 8,500 Asset Machinery Land Building Gain/Loss $ 10,750 27,500 (20,000) 35,000 Assuming Brandon's marginal ordinary income...
(The following information applies to the questions displayed below.) Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Asset Original Cost Depreciation Gain/Loss Computers $ 6,000 $ 2.000 $ (3,000) Machinery 10,000 4.000 (2.000) Furniture 20,000 12.000 7,000 Building 100,000 10.000 (1.000) Assuming Buckley's marginal ordinary income tax rate is 32...
[The following information applies to the questions displayed below.] Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Asset Original Cost Depreciation Gain/Loss Computers $ 6,000 $ 2,000 $ (3,000) Machinery 10,000 4,000 (2,000) Furniture 20.000 12.000 7,000 Building 100,000 10.000 (1.000) Assuming Buckley's marginal ordinary income tax rate is 32...
The following information applies to the questions displayed below. Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Original Cost $ 6,000 Gain/Loss $ (3,000) Asset Depreciation 2000 Computers Machinery Furniture 10.,000 20,000 4,000 (2,000) 7000 12.000 Building 100,000 10,000 (1,000) Assuming Buckley's marginal ordinary income tax rate is 32 percent,...
Amber Industries (a sole proprietorship) sold three § 1231 assets during 2018. Data on these property dispositions are as follows: Asset Rack Forklift Bin Cost $100,000 35,000 87,000 Acquired 10/10/14 10/16/15 03/12/17 Depreciation $100,000 23,000 31,000 Sold For $145,000 3,000 60,000 Sold On 10/10/18 10/10/18 10/10/18 a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter 0. Character of Gain or Loss Total Amount of...
Most questions answered within 3 hours.
-
Luther Corporation
Consolidated Balance Sheet
December 31, 2019 and 2018 (in $ millions)
Assets
2019
2018...
asked 1 minute from now -
(Expected rate of return and risk) Carter Inc. is evaluating a
security. Calculate the investment’s expected...
asked 2 hours ago -
What specific indicators can point to lack of progress for
African Americans in American society?
asked 3 hours ago -
1-The Electrons in a beam are moving at 2.7×108 m/s in an
electric field of 15000...
asked 3 hours ago -
A gas tank is a vertical cylinder. It has a radius of 1m, a
height of...
asked 4 hours ago -
Accent Software faces the following conditions. All of these
support Accent’s use of a market-penetration pricing...
asked 5 hours ago -
A mathematically inclined friend emails you the following
instructions: "Meet me in the cafeteria the first...
asked 5 hours ago -
A monopoly sells in two countries . The demand curves in the two
countries are p1...
asked 6 hours ago -
A .15kg rubber ball is bounced off a wall. Before hitting the
wall, the ball moves...
asked 7 hours ago -
A manufacturing company preparing to build a new plant is
considering three potential locations for it....
asked 7 hours ago -
B. If compound Y has approximately the same values of solubility
in toluene as compound X,...
asked 7 hours ago -
Oscar Inc. has inventory in Japan valued at 39,051,000 Yen one
year ago. One year ago...
asked 7 hours ago