Problem 12-10 A small business sold an equipment for $100,000 after depreciating the equipment using SOYD...
Problem 12-10
A small business sold an equipment for $100,000 after depreciating the equipment using SOYD depreciation method. The federal tax liability on this depreciation recapture is $34,000 if the company also had other taxable income of $150,000 in that year.
True/False
Homework Answers
true
using Sum Of Year's Depreciation method the small business sold its equipment for $100,000. $34000 is the depreciation recapture on the federal tax liability. the company also had other taxable income of $150,000.
SOYD = n(n+1)/2, where n is the estimated useful life.
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Problem 12-10
A small business sold an equipment for $100,000 after
depreciating the equipment using SOYD...
Problem 1-10 (LO. 4, 5) Ashley runs a small business in Boulder, Colorado, that makes snow...
Problem 1-10 (LO. 4, 5)
Ashley runs a small business in Boulder, Colorado, that makes
snow skis. She expects the business to grow substantially over the
next three years. Because she is concerned about product liability
and is planning to take the company public in year 2, she currently
is considering incorporating the business. Pertinent financial data
are as follows:
Year 1
Year 2
Year 3
Sales revenue
$150,000
$320,000
$600,000
Tax-free interest income
5,000
8,000
15,000
Deductible cash expenses...
Ashley runs a small business that makes snow skis. She expects the business to grow substantially...
Ashley runs a small business that makes snow skis. She expects
the business to grow substantially over the next three years.
Because she is concerned about product liability and is planning to
take the company public in year 2, she currently is considering
incorporating the business. Pertinent financial data are as
follows:
Year 1
Year 2
Year 3
Sales revenue
$150,000
$320,000
$600,000
Tax-free interest income
5,000
8,000
15,000
Deductible cash expenses
30,000
58,000
95,000
Tax depreciation
25,000
20,000
40,000...
Facts Cost Eva Corp generated $100,000 of income from business operations. In addition, Eva Corp sold...
Facts Cost Eva Corp generated $100,000 of income from business operations. In addition, Eva Corp sold the following assets All were held more than 12 months. Warehouse depreciation all straight line. Acc Dpn Sales Procceds 19.000 1999 Questions : Two2 Calculate gain or loss on each asset. Machinery $90,000 $21,000 $50,000 12 31 Chapte) Detemine character of gains and losses Equipment 100,000 80,000 70,000 1231 Afgan Calculate taxable income Warehouse 400,000 100,000 500,000 200.000 g at figure out lepreciation Investment...
A taxpayer purchased used business equipment on November 20, 2016, for $100,000. The equipment was sold...
A taxpayer purchased used business equipment on November 20, 2016, for $100,000. The equipment was sold for $60,000 on August 25, 2018. Depreciation information is as follows: Accelerated depreciation taken $47,500 Straight-line depreciation (7-year life) would have been 28,500 How will the gain or loss on the sale of this equipment be treated for tax purposes? Question 18 options: 1) $7,500 ordinary income 2) $7,500 long-term capital gain 3) $7,500 short-term capital gain 4) $7,500 Section 1231 gain 5) None...
please help me 15. An automated inspection system purchased at a cost of $200,000 by Mega Tech ears Engineering was depreciated using the MACRS method. The system was sold after 4 y for $150,000....
please help me
15. An automated inspection system purchased at a cost of $200,000 by Mega Tech ears Engineering was depreciated using the MACRS method. The system was sold after 4 y for $150,000. Determine the depreciation recapture on this equipment. A. $50,000 B. $O С $ 37,488. D. $87,520
15. An automated inspection system purchased at a cost of $200,000 by Mega Tech ears Engineering was depreciated using the MACRS method. The system was sold after 4 y for...
Taxation
Mr. and Mrs. Z, both in their late 30s, file a joint tax return. They have one dependent child who is age 5. Mr. Z is an employee with wages = $100,000. Federal tax withholding from his paycheck = $16,000. Their itemized deductions = $30,000. Any preferential tax rate = 0%. Allowable adjustment for retirement account = $5,000. Mrs. Z runs a part-time business that she operates as a sole proprietor. This year’s information is as follows:Revenue $30,000, Cost of...
Problem 17-32 (LO. 3, 7) Benton Company (BC), a calendar year entity, has one owner, who...
Problem 17-32 (LO. 3, 7) Benton Company (BC), a calendar year entity, has one owner, who is in the 37% Federal income tax bracket (any net capital gains or dividends would be taxed at a 20% rate). BC's gross income is $395,000, and its ordinary trade or business deductions are $245,000. Ignore the standard deduction (or itemized deductions) and the deduction for qualified business income. If required, round computations to the nearest dollar. a. BC is operated as a proprietorship,...
t sold his s corporation stock for $100,000. His basis in the stock was $40,000, which...
t sold his s corporation stock for $100,000. His basis in the stock was $40,000, which was also its book value. his share of s corporation assets included depreciable equipment with a basis of $10,000 and a fair market value of $25,000. which of the following statements is correct regarding the sale by T? A) if T was a material participant in the LLC entity, his taxable capital gain for regular tax purposes is $45,000. B) if T was a...
Problem C Given the following problem, answer questions 20 to 21 A company operates in Ottawa...
Problem C Given the following problem, answer questions 20 to 21 A company operates in Ottawa (Ontario) and last year they had a gross revenue of $2,300,000. They paid $1,150,000 for salaries and benefits and spent $550,00 for other business-related expenses. They use an especial piece of equipment with the UCC of $200,000. The CCA rate for this equipment is 30 % . 20. What is the taxable income of the company? a) $1,150,000 c) $570,000 b) $600,000 d) $540,000...
unearned revenue arises because the business receives goods or services before payment has been made True...
unearned revenue arises because the business receives goods or services before payment has been made True or false retirement compensation is a benefit because the employer sets aside money for the employees future retirement True or false gross pay is the total amount of salary,wages,commissions,and bonuses earned by an employee during a pay period,after taxes or any other deductions True or false the old age,survivors,and disability insurance component of FICA tax is imposed on the entire amount of an individual...
Problem 1-10 (LO. 4, 5)
Ashley runs a small business in Boulder, Colorado, that makes
snow skis. She expects the business to grow substantially over the
next three years. Because she is concerned about product liability
and is planning to take the company public in year 2, she currently
is considering incorporating the business. Pertinent financial data
are as follows:
Year 1
Year 2
Year 3
Sales revenue
$150,000
$320,000
$600,000
Tax-free interest income
5,000
8,000
15,000
Deductible cash expenses...
Ashley runs a small business that makes snow skis. She expects
the business to grow substantially over the next three years.
Because she is concerned about product liability and is planning to
take the company public in year 2, she currently is considering
incorporating the business. Pertinent financial data are as
follows:
Year 1
Year 2
Year 3
Sales revenue
$150,000
$320,000
$600,000
Tax-free interest income
5,000
8,000
15,000
Deductible cash expenses
30,000
58,000
95,000
Tax depreciation
25,000
20,000
40,000...
Facts Cost Eva Corp generated $100,000 of income from business operations. In addition, Eva Corp sold the following assets All were held more than 12 months. Warehouse depreciation all straight line. Acc Dpn Sales Procceds 19.000 1999 Questions : Two2 Calculate gain or loss on each asset. Machinery $90,000 $21,000 $50,000 12 31 Chapte) Detemine character of gains and losses Equipment 100,000 80,000 70,000 1231 Afgan Calculate taxable income Warehouse 400,000 100,000 500,000 200.000 g at figure out lepreciation Investment...
please help me
15. An automated inspection system purchased at a cost of $200,000 by Mega Tech ears Engineering was depreciated using the MACRS method. The system was sold after 4 y for $150,000. Determine the depreciation recapture on this equipment. A. $50,000 B. $O С $ 37,488. D. $87,520
15. An automated inspection system purchased at a cost of $200,000 by Mega Tech ears Engineering was depreciated using the MACRS method. The system was sold after 4 y for...
Problem C Given the following problem, answer questions 20 to 21 A company operates in Ottawa (Ontario) and last year they had a gross revenue of $2,300,000. They paid $1,150,000 for salaries and benefits and spent $550,00 for other business-related expenses. They use an especial piece of equipment with the UCC of $200,000. The CCA rate for this equipment is 30 % . 20. What is the taxable income of the company? a) $1,150,000 c) $570,000 b) $600,000 d) $540,000...
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