Homework Answers
| Cost of Freezer | 60,000 | |
| Less: Total Expense & Depreciation | 19,595 | =5000+14595 |
| Book Value on date of sale | $ 40,405 | |
| Ordinary gain | $ 11,595 | =52,000-40,405 |
| Correct answer is option C . | ||
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3. Belle Corp. purchased a new freezer for its grocery business at a cost of $60,000....
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Oisa Corporation purchased Residential Real Estate at a cost of $350,000. Accelerated Depreciation in the amount of $156,000 had been correctly claimed on the property when the property was sold for $520,000. Straight-Line Depreciation would have been $120,000. On the sale, Oisa Corporation would recognize gain as follows: $326,000 Section 1250 Gain (Ordinary Income). $36,000 Section 1250 Gain (Ordinary Income) and $290,000 Section 1231 Gain (Long-Term Capital Gain). $60,000 Section 1250 Gain (Ordinary Income) and $266,000 Section 1231 Gain (Long-Term...
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Jackson Corporation prepared the following book income statement for its year ended December 31, 2017: Computations for...
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