Homework Answers
a) Parking lot will be considered as Capital asset assuming that the same is integral part of the Business for XYZ Corporation and the same would be taxed at capital gains rate under section 1250
b) Land held as an Investment will be considered as Capital asset and the same would be taxed at capital gains rate.
c) An Automobile will be considered as Capital asset and the same would be taxed at capital gains rate
d) The Truck will be owned by the Contractor will be considered as Section 1231 asset and the same would be taxed at lower capital gain tax rate versus the ordinary income
e) If the Office building is integral part of the accounting practice business of Leslie, the same would be treated as capital asset and will taxed at capital gains rate
f) The computer owned by Yvonne will be considered as Section 1231 asset and the same would be taxed at lower capital gain tax rate versus the ordinary income
Thanks and Regards
Add Answer to:
2 POINTS (6) Indicate whether each of the following assets are capital assets, Sec. 1231 assets, or ordinary income...
Indicate whether each of the following assets are capital assets, Sec. 1231 assets, or ordinary income...
Indicate whether each of the following assets are capital assets, Sec. 1231 assets, or ordinary income property (property which, if sold, results in ordinary income). Assume that all of the property is held for more than one year. a. XYZ Corporation owns land used as an employee parking lot. How is the parking lot classified for tax purposes? b. Montana Corporation owns land held as an investment. How is the land classified for tax purposes? c. John, a self-employed electrician,...
17-26 Characterizing Assets. Indicate whether the following gains and losses are $ 1231 gains or losses...
17-26 Characterizing Assets. Indicate whether the following gains and losses are $ 1231 gains or losses or capital gains and losses or neither. Make your determination prior to the $1231 netting process. a. Printing press used in A's business; held for three years and sold at a loss. b. Goodwill sold as part of the sale of B's business. c. Vacant lot used five years as a parking lot in C's business; sold at a gain. House, 80% of which...
gains and losses are $1231 ke your determination prior PROBLEMS 17-26 Characterizing Assets. Indicate whether the...
gains and losses are $1231 ke your determination prior PROBLEMS 17-26 Characterizing Assets. Indicate whether the following gains and losse gains or losses or capital gains and losses or neither. Make your deter to the $ 1231 netting process. 2. Printing press used in A's business; held for three years and sold at a les b. Goodwill sold as part of the sale of B's business. c. Vacant lot used five years as a parking lot in C's business; sold...
1. Capital Assets. (Obj. 1) Indicate which of the following are capital assets. Item Answer a....
1. Capital Assets. (Obj. 1) Indicate which of the following are capital assets. Item Answer a. House occupied as a residence by the owner b. Delivery truck used in a contractor's business c. Corporate stocks owned by a doctor d. Valuable jewelry held for sale by Jones Jewelers e. Land held for investment by an accountant f. Automobile used for personal purposes by the owner g. Business suits worn only to work h. House used strictly as a summer residence...
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table...
Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Date Placed Original Asset in Service Basis Machinery 25-Oct $ 78,000 Computer equipment 03-Feb $ 18,000 Used delivery truck* 17-Mar $ 31,000 Furniture 22-Apr $ 158,000 Total $ 285,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed new flooring (qualified improvement property) to...
Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current...
Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Date Placed Original Asset in Service Basis Machinery October 25 $ 106,000 Computer equipment February 3 $ 46,000 Used delivery truck* March 17 $ 59,000 Furniture April 22 $ 186,000 Total $ 397,000 *The delivery truck is not a luxury automobile. In addition to...
Required information Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during...
Required information Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2, and Table 5.) Asset Machinery Computer equipment Used delivery truck* Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 104,000 $ 44,000 $ 57,000 $184,000 $ 389,000 *The delivery truck is not a luxury automobile. In addition to...
Benedict Company incurred the following costs. Indicate to which account Benedict would debit each of the...
Benedict Company incurred the following costs. Indicate to which
account Benedict would debit each of the costs.
No.
Transactions
Account
1.
Sales tax on factory
machinery purchased
$ 5,000
select one from the following: Insurance Expense or Land or
Buildings or Equipment or Architect’s Fees or Tax Expense or
Repairs and Maintenance Expense or Advertising Expense or Land
Improvements or Prepaid Insurance
2.
Painting of and lettering on
truck immediately upon purchase
700
select
one from the following: Insurance Expense...
2. Determine the amount of gross income the taxpayer must report in each of the following...
2. Determine the amount of gross income the taxpayer must report in each of the following situations. Explain why the amount is taxable and how you determined the taxable amount. a. National Corporation receives a $12,000 bill for legal fees from its attorney in December. National paid the bill promptly and deducted the $12,000 as a legal expense for its year ending December 31. During the audit of its financial statements, the auditor determines that the attorney had double billed...
this is for an advanced tax accounting course Required information The following information applies to the...
this is for an advanced tax accounting course
Required information The following information applies to the questions displayed below WAR (We Are Richj has been in business since 1985 WAR is an accrual method sole proprietorship that deals in the manufacturing and wholesaling of various types of golf equipment Hack & Hack CPAs has filed accurate tax returns for WAR's owner since WAR opened its doors. The managing partner of Hack & Hack (Jack) has gotten along very well with...
Indicate whether each of the following assets are capital assets, Sec. 1231 assets, or ordinary income property (property which, if sold, results in ordinary income). Assume that all of the property is held for more than one year. a. XYZ Corporation owns land used as an employee parking lot. How is the parking lot classified for tax purposes? b. Montana Corporation owns land held as an investment. How is the land classified for tax purposes? c. John, a self-employed electrician,...
17-26 Characterizing Assets. Indicate whether the following gains and losses are $ 1231 gains or losses or capital gains and losses or neither. Make your determination prior to the $1231 netting process. a. Printing press used in A's business; held for three years and sold at a loss. b. Goodwill sold as part of the sale of B's business. c. Vacant lot used five years as a parking lot in C's business; sold at a gain. House, 80% of which...
gains and losses are $1231 ke your determination prior PROBLEMS 17-26 Characterizing Assets. Indicate whether the following gains and losse gains or losses or capital gains and losses or neither. Make your deter to the $ 1231 netting process. 2. Printing press used in A's business; held for three years and sold at a les b. Goodwill sold as part of the sale of B's business. c. Vacant lot used five years as a parking lot in C's business; sold...
1. Capital Assets. (Obj. 1) Indicate which of the following are capital assets. Item Answer a. House occupied as a residence by the owner b. Delivery truck used in a contractor's business c. Corporate stocks owned by a doctor d. Valuable jewelry held for sale by Jones Jewelers e. Land held for investment by an accountant f. Automobile used for personal purposes by the owner g. Business suits worn only to work h. House used strictly as a summer residence...
Required information Problem 10-54 (LO 10-2, LO 10-3) Convers Corporation (calendar-year-end) acquired the following assets during the current tax year: (ignore $179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table2, and Table 5.) Asset Machinery Computer equipment Used delivery truck* Furniture Total Date Placed in Service October 25 February 3 March 17 April 22 Original Basis $ 104,000 $ 44,000 $ 57,000 $184,000 $ 389,000 *The delivery truck is not a luxury automobile. In addition to...
Benedict Company incurred the following costs. Indicate to which
account Benedict would debit each of the costs.
No.
Transactions
Account
1.
Sales tax on factory
machinery purchased
$ 5,000
select one from the following: Insurance Expense or Land or
Buildings or Equipment or Architect’s Fees or Tax Expense or
Repairs and Maintenance Expense or Advertising Expense or Land
Improvements or Prepaid Insurance
2.
Painting of and lettering on
truck immediately upon purchase
700
select
one from the following: Insurance Expense...
2. Determine the amount of gross income the taxpayer must report in each of the following situations. Explain why the amount is taxable and how you determined the taxable amount. a. National Corporation receives a $12,000 bill for legal fees from its attorney in December. National paid the bill promptly and deducted the $12,000 as a legal expense for its year ending December 31. During the audit of its financial statements, the auditor determines that the attorney had double billed...
this is for an advanced tax accounting course
Required information The following information applies to the questions displayed below WAR (We Are Richj has been in business since 1985 WAR is an accrual method sole proprietorship that deals in the manufacturing and wholesaling of various types of golf equipment Hack & Hack CPAs has filed accurate tax returns for WAR's owner since WAR opened its doors. The managing partner of Hack & Hack (Jack) has gotten along very well with...
Most questions answered within 3 hours.
-
Problem 03.019 Annual Worth Calculations
Find the value of x that makes the equivalent annual
worth...
asked 40 seconds from now -
At 1 bar, how much energy is required to heat 61.0 g of H2O(s)
at −12.0...
asked 16 minutes ago -
Find the mixed-strategy equilibrium to the Battle of the sexes
game in Figure 5.1 below
Hockey...
asked 18 minutes ago -
Use the following information to answer the next three
questions.
QUESTION 5
As of today, the...
asked 24 minutes ago -
Using the specific identification method: Date Units purchased
Cost per unit Ending inventory March 1 15...
asked 26 minutes ago -
PLEASE HELP, NO ONE IS ANSWERING MY QUESTION AND IT IS SUE TODAY
WORTH 20% OF...
asked 41 minutes ago -
α = 0.0007889 T, I = 2.9 A
Other Magnetic Fields: First, based on your
value...
asked 40 minutes ago -
This assignment is a continuation of the 2nd one. You as a HR
Manager, select an...
asked 42 minutes ago -
Hastings Entertainment has a beta of 0.64. If the market return
is expected to be 13.80...
asked 54 minutes ago -
9. Depository institutions are always:
a. illiquid
b. profitable
c. insolvent
d. all of the above...
asked 1 hour ago -
Use AstroTurf Company's income statement below to answer the
following two questions. Answer these questions with...
asked 1 hour ago -
How is a firm's task
environment different from its general environment? Provide
examples of both types...
asked 1 hour ago