In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3, Longworth sold the machine for $37,900. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $25,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $19,400? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss)
Q: Jacob purchased business equipment for $89,100 in 2017 and has taken $53,460 of regular MACRS…
A: Income tax: It is the tax levied by the federal government on the income earned by individuals,…
Q: In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3,…
A: A capital gain is generated because of the sale of both short-term and long-term capital assets.…
Q: What is the minimum taxable capital gain to be reported in the current year.
A: CAPITAL ASSETS :- A capital asset is an item that you own for investment or personal purposes, such…
Q: Garcia disposed of his principal residence for P2,000,000 and immediately acquired a new one for…
A: In Phillipines capital gain tax is charged at 6% on the sale value or…
Q: Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During…
A: To extent of depreciation will be treated as section 1250 Unrecaptured gain. Balance gain is…
Q: Moran owns a building he bought during year 0 for $179,000. He sold the building in year 6. During…
A: A tax consequence has to be bear by the business owner on selling their property. There can be…
Q: On November 22, 2020, Ms. Wilma Vander purchased an automobile to be used exclusively in her newly…
A: The cost of the automobile is $45,000 before GST and it is a class 10.1 vehicle. Hence, the maximum…
Q: Jacob purchased business equipment for $144,900 in 2018 and has taken $86,940 of regular MACRS…
A: Given, Cost of business 144900 Depreciation 86940 Sale price 65205
Q: in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3,…
A: GENERAL POINTS - ** UPON THE SALE OF ASSET IF THE SALE PROCEEDS EXCEED THE COST OF ASSET THEN THE…
Q: Parmida sold a Class 1 depreciable asset to a corporation that she controls in exchange for a…
A: Section 85 election is used to reduce or minimize the liability of tax by transferring the eligible…
Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…
A: Solution- Step(1)-Alphonos purchased office building in 2010=$60000Machinery in september of…
Q: Mr. Reyes disposed his principal residence for P2,000,000 and immediately acquired a new one for…
A: The capital gain tax are imposed on the capital gain incurred during the year, the capital gains…
Q: Moran owns a building he bought during year 0 for $237,000. He sold the building in year 6. During…
A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…
Q: In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3,…
A: Given data, Machinery purchased=$58,250 Sold the Machine for $37,900 Depreciation on machine up to…
Q: In year O, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3,…
A: The question is based on the concept of Financial Accounting.
Q: Alpha sold machinery, which it used in its business to Beta, a related entity for $40,400. Beta used…
A: Given information is: Sale value of machinery = $40,400 Cost of machinery = $49,600 Depreciation…
Q: Moran owns a building he bought during year O for $227,00O. He sold the building in year 6. During…
A: The question is based on the concept of Financial Accounting.
Q: Woolard Supplies (a sole proprietorship) has taxable income in 2021 of $300,000 before any…
A: 1. Office furniture belongs to 7 year, 200% class. Also in the year of purchase, half year…
Q: Sumner sold equipment that it uses in its business for $31,400. Summer bought the equipment a few…
A: Depreciation can be defined as decrease in the book value of an asset each year.
Q: In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3,…
A: Step 1 The book value on the date of sale of $27,300 is obtained by subtracting the depreciation of…
Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…
A: In the above question we have to calculate Adjusted Gross Income for 2018 for Alphonso with the help…
Q: On January 1, 2011, Sam Johnson acquired depreciable real property for $50,000. He used…
A: Capital gain The amount of increment in the value of capital assets and will be realized on account…
Q: D sold capital property in the current year for net proceeds of $900,000. The property has an…
A: Capital gain refers to the gain that is earned because of the increase in capital asset value. The…
Q: Alphonso purchased an office building in 2010 for $650,000 and machinery (7-year property) in…
A: Alphonso Purchased Office building in 2010 = $650000 Machinery in September of 2015 = $60000 In…
Q: At the beginning of the year, Anna began a calendar-year business and placed in service the…
A: Depreciation is the reduction in value of asset over the useful life of the asset.
Q: Baker Corporation owned a building located in Kansas. Baker used the building for its business…
A: Involuntary conversion occurs when the property is destroyed/stolen/condemned and the taxpayer…
Q: Baker Corporation owned a building located in Kansas. Baker used the building for its business…
A: b. Recognized Gain $0 and Basis in new building $300,000
Q: On August 4, 2021, calendar year taxpayer Ben Baker acquires and places in service in his sole…
A: Introduction: Depreciation is the process of reducing the complete cost of an expensive item…
Q: Stan owned machinery which had been acquired at a cost of $250,000. During 2020, the machinery was…
A: acquired at a cost of $250,000. adjusted basis of $200,000. The insurance proceeds awarded to Stan…
Q: Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following…
A: Step 1 Taxable income is the income which is subject to tax jurisdictions.
Q: On the effective date of the Bravo Corporation's (the Company) S Corporation election (January 1,…
A: Built in gains= 35% tax paid by the S corp on sale or distribution of its assets only if it has any…
Q: Kevin Bacon owns all the stock of Donna Corporation. During the year, Kevin sold a building to Donna…
A: Tax is charge which is charged on the income but a on taxable income. The tax has to be paid by the…
Q: Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and…
A: Asset original cost accumulated depreciation gain/loss Machinery $31,400…
Q: year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…
A: Gain To the extent of accumulated depreciation we should consider as sectiom 1245 depreciation…
Q: Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift…
A: Gain recognized=Liability-Adjusted basis=$60,000-$50,000=$10,000
Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…
A: The correct answer for the above questions is given in the following steps for your reference.
Q: Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During…
A: The question is based on the concept of Financial Accounting.
Q: gains are recognized in periods subsequent to the year of sale, those gains will be apportioned…
A: The gain on sale should be recognized in the subsequent periods using the percentage of gross profit…
Q: Moran owns a building he bought during year 0 for $179,000. He sold the building in year 6. During…
A: Section 1231: “Section necessitates netting of § 1231 gains and losses. If the end result is a gain,…
Q: Blue Company, a calendar year taxpayer, purchased new equipment for $2,100,000 on November 1, 2021…
A: If equipment acquired and sell same year. There is no deprecated on equipment. Following is the…
Q: At the beginning of the year, Anna began a calendar-year business and placed in service the…
A: Cost recovery is the process of subtracting a portion of the cost of an item used in a business or…
Q: 18. Ryland Company, a calendar year taxpayer, purchased commercial realty for $2 million and…
A: Depreciation is the lessening in the worth of a fixed asset due to obsolescence, erosion or normal…
Q: Andres, VAT-registered real estate dealer, transferred a parcel of land held for sale to Camella…
A: The transaction in the real estate are subjected to VAT and all transactions of sale types are…
Q: Moran owns a building he bought during year 0 for $179,000. He sold the building in year 6. During…
A: A tax consequence has to be bear by the business owner on selling their property. There can be…
Q: Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On date of…
A: Answer: Particulars Inventory Others Goodwill Total Amount realized 154000 73400 89100 316500…
Q: In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3,…
A: Compute the amount and character of the gain or loss that Longworth will recognize on the sale:
Q: In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Moran owns a building he bought during year O for $227,000. He sold the building in year 6. During…
A: SOLUTION DEPRECIATION MEANS MONETARY VALUE DECREASES OVER TIME DUE TO USE ,WEAR ,TEAR AND…
Q: Moran owns a building he bought during year 0 for $223,000. He sold the building in year 6. During…
A: Formula: Net book value of Asset = Asset purchase value - Depreciation
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In year 0, Longworth Partnership purchased a machine for $57,250 to use in its business. In year 3, Longworth sold the machine for $44,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $24,900. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) AmountIn year 0, Longworth Partnership purchased a machine for $44,500 to use in its business. In year 3, Longworth sold the machine for $38,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $31,100. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $68,000? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) c. What are the amount and character of the gain or loss Longworth will recognize on the sale…In year 0, Longworth Partnership purchased a machine for $56,000 to use in its business. In year 3, Longworth sold the machine for $36,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $29,800. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,250? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss) Ordinary Gain or (Loss) $1231 gain or (loss) Amount
- In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3, Longworth sold the machine for $37,900. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $25,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss)In year 0, Longworth Partnership purchased a machine for $54,500 to use in its business. In year 3, Longworth sold the machine for $36,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $26,700. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of the gain or loss Longworth will recognize on the sale? b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $65,500?In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3, Longworth sold the machine for $38,600. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $28,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $66,750? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss)
- In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of the gain or loss Longworth will recognize on the sale? In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What is the amount and character of the gain or loss Longworth will recognize on the sale? In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In…In year 0, Longworth Partnership purchased a machine for $57,500 to use in its business. In year 3, Longworth sold the machine for $38,800. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $27,300. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $70,000? Please don't provide answer in image format thank youRequired information [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $16,500 (before the $1231 netting process, if applicable)? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Los) $1231 gain/(loss)
- In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a partnership? Total Gain/Loss Recognized Character of Recognized Gain/Loss Ordinary Gain/Loss 1231 gain/Loss! Required information [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $67,500? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss)n year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) d. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation and the sale proceeds were decreased to $20,000?