Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. (Do not round intermediate computations.)
3. Complete Moab Inc.’s Form 4797 for the year.
Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its...
RobR manufactures and distributes high-tech hiking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. Part 1 Determine the gain/loss realized and recognized in the current year for each of these events. Also determine whether the gain/loss recognized is §1231, capital, or ordinary. RobR sold a machine that it used to make computerized gadgets...
Mona Inc. makes and distributes bicycle accessories. To streamline its operations and to become leaner, it had the following transactions: It sold a machine that made some accessories for $54,600 cash. The machine originally cost $38,400 three years ago and has accumulated depreciation of $16,000. Mona Inc., owned stock of XYZ Corporation worth $24,000 at the beginning of the year and $30,460 at the end of the year. Mona sold some inventory for $14,000 with a cost of $10,000 during...
Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $19500 and the adjusted basis was $1400 at the time of the accident. The taxi was repaired at a cost of $2,800 and insurance reimbursed Don $736 of this cost. What is the amount of Don's casualty loss DEDUCTION -Bateman Corporation sold an office building that it used in its business for $800,750. Bateman bought the...
Sondland, Inc. currently produces gadgets and is considering expanding its operations. The company owns land beside its current manufacturing facility that could be used for the expansion. The company bought this land ten years ago at a cost of $352,000 and spent $35,000 on grading and excavation costs at that time. Today, the land is valued at $573,000. The company currently has some unused equipment that it currently owns with a current market value of $79,000. This equipment could be...
BSU Inc. wants to purchase a new machine for $41,010, excluding $1,500 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,100, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $9,000 each year of its economic life. The straight-line depreciation method would be used for the new...
3. Some of the websites show graphs indicating how one currency has done relative to another currency a. Over the past year, how has the pound performed against the dollar? Does the dollar buy more or less pounds today than it did 1 year ago? b. Over the past year, how has the dollar performed against the yen? Does the dollar buy more or less yen today than it did 1 year ago? 4. Some of the websites provide information...
The net changes in the balance sheet accounts of Logan, Inc. for the below: 2. year 2019 are shown Accounts Debit Credit S 102,800 Cash Accounts Receivable Allowance for Doubtful Accounts Inventory Prepaid Expenses Long-Term Investments Land Buildings Machinery Office Equipment Accumulated Depreciation S 32,000 7,000 108,600 10,000 72,000 150,000 300,000 50,000 14,000 12,000 10,000 Buildings Machinery 6,000 91,600 Office Equipment Accounts Payable Accrued Liabilities Dividends Payable Premium on Bonds Payable Bonds Payable Preferred stock ($50 par) Common stock ($10...
(Capital gains tax) The J. Harris Corporation is considering selling one of its old assembly machines. The machine, purchased for $30,000 5 years ago, had an expected life of 10 years and an expected salvage value of zero. Assume Harris uses simplified straight-line depreciation (depreciation of $3,000 per year) and could sell this old machine for $35,000. Also assume Harris has a 34 percent marginal tax rate. a. What would be the taxes associated with this sale? b. If the...
Splish Ltd. owned several manufacturing facilities. On September 15 of the current year, Splish decided to sell one of its manufacturing buildings. The building had cost $9,310,000 when originally purchased 8 years ago, and had been depreciated using the straight-line method with no residual value. Splish estimated that the building had a 35-year life when purchased. Prepare the journal entry to record the sale of the building on Splish's books, assuming 8 years of depreciation has already been recorded in...
BSU Inc. wants to purchase a new machine for $31,320, excluding $1,500 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $2,300, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $7,000 each year of its economic life. The straight-line depreciation method would be used for the new...