Sergio, a sole proprietor, purchased a van for $35,000 to use exclusively in his delivery business. Six months later, he sold the van for $38,000. Sergio's $3,000 gain from the sale of this property should be reported as: 00 Gross receipts or sales on Schedule C, Part I. A gain from the sale or exchange of property used in a trade or business on Form 4797, Part I. An ordinary gain on Form 4797, Part II. A gain from the disposition of property on Form 4797, Part III.
Q: Compute the contribution margin ratio and fixed costs using the following data. Sales $5,900…
A: The contribution margin is calculated as difference between sales and variable costs. The net income…
Q: Matray acquired 16,000 ordinary shares of Petros on 1 April 20X9. On 31 December 20X8 Petros’s…
A: Goodwill = Purchase consideration - Fair value of net assets acquired Purchase consideration = Cost…
Q: Sunland Company uses a perpetual inventory system and reports the following for the month of June.…
A: The inventory can be valued using various methods as FIFO, LIFO and weighted average method. Using…
Q: Royal Technology Company uses a job order cost system. The following data summarize the operations…
A: A journal entry in accounting is a record of a financial transaction that documents the debit and…
Q: es Aces Incorporated, a manufacturer of tennis rackets, began operations this year. The company…
A: Absorption Costing Method :— Under this method, product cost is calculated by adding direct…
Q: Eckert Company uses the absorption costing approach to cost-plus pricing to set prices for its…
A: Desired Profit :— It is calculated by multiplying investment with % return on investment. Target…
Q: Briefly describe human behavior problems that might arise if budget goals are set too tightly. What…
A: Budgeting is an essential part of financial planning for businesses, and it involves setting goals…
Q: town Corporation purchased 75 percent of Sandbox Company common stock and 40 percent of its…
A: Consolidation is the process of merging the financial statements of parent and subsidiary to show…
Q: Four grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a…
A: Direct materials purchase budget is based on production needs and is prepared to predict the…
Q: Beginning inventory Inventory purchases (on account) Freight charges on purchases (paid in cash)…
A: The inventory can be recorded differently under different methods as perpetual and periodic system.…
Q: Determine the amount of the Earned Income Credit in each of the following cases. Assume that the…
A: The Earned Income Credit (EIC) is a tax credit designed to provide financial assistance to…
Q: Blue Corporation, a manufacturing company, decided to develop a new line of merchandise. The project…
A: The systems theory of management offers a helpful framework for comprehending the intricate…
Q: A) An inventory of 460 units of an obsolete model of the stove remains in the stockroom. These must…
A: Since, the inventory consists of obsolete stove items, the manufacturing cost incurred are now sunk…
Q: JESTION 26 The LRA prohibits the employer from treating part-time employees differently from…
A: For both Questions 25 and 26, the answers relate to labor laws and regulations. In Question 25, the…
Q: Case #4 Fairswing Corp. manufactures golf-club bags that sell for $230 per bag. Each month, they…
A: The special orders are not very frequent like normal sales. The acceptance or rejection of special…
Q: Bradley Corporation issued 10,000 shares of common stock on January 1, 2013. The stock has par value…
A: Common stock is a type of security that represents ownership in a corporation. When a corporation…
Q: Please explain proper steps by Step and Do Not Give Solution In Image Format And Fast Answering…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Lect the best answer. hich of the following statements regarding various entities is true? O D O A.…
A: Partnership refers to the term which is defined as the contractual agreement among two or more…
Q: Which of the following statements regarding income recognition is true? A. Owners in a regular…
A: Sole proprietorship is the type of business entity in which its operations and management is…
Q: in the current year largo company purchased bonds on macdermont corporation with a cost of 125000…
A: Financial assets are the assets that include cash, equity instrument of other entities, and any…
Q: Which of the following is NOT a true statement about the statement of cash flows? a. It shows how…
A: Cash flow statement is one of financial statements which gives details of cash related activities.…
Q: 1. Compute the product margins for the B300 and T500 under the company’s traditional costing system.…
A: Hi-Tek Manufacturing, Incorporated produces two types of industrial component parts - B300 and T500.…
Q: ollowing information applies to the questions displayed below.
A: Transaction/ Adjustment Current Assets Non Current Assets Current Liabilities Non Current…
Q: A list of accounts of a business at the start of a week is as follows: $ Trade debtors Inventory…
A: Assets of a company include the cash, vehicle, properties and buildings. The liabilities are the…
Q: partnership has total equity of $491,000. Partnership equity consists of Green, Capital, $342,000,…
A: Partnership refers to a formal agreement or relationship between two or more individuals,…
Q: Fitz Company reports the following information. Selected Annual Incone Statement Data Net Income…
A: Cash flow from operating activities records inflow or outflow of cash from the regular business…
Q: ournalize period F
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Shown below is an adjusted trial balance for Sheffield Ltd. at the end of its fiscal year end,…
A: The financial statements are the statements prepared at the end of the period in order to determine…
Q: Berry purchased a building (including land) for $711,000. Berry plans to use the building. The…
A: A journal entry is a record of all business transactions of the company. It records both side of…
Q: During October 2018, the following changes in inventory item F555 took place: Date October, 1. 12 23…
A: Ending inventory is the inventory in hand at the conclusion of the period. It is shown under the…
Q: Cash flows from operating activities Net income Adjustments to reconcile net income to net cash…
A: Cash Flow Statement - A cash flow statement is a financial statement that includes the inflow and…
Q: Explain what factors a company consider to manage their accounts receivable.
A: Accounts receivable refer to the amounts owed to a company by its customers for goods or services…
Q: Emery Pharmaceutical uses an unstable chemical compound that must be kept in an environment where…
A: Answer:- Economic order quantity:- The economic order quantity is the amount of inventory that a…
Q: In 2022, Lisa and Fred, a married couple, had taxable income of $308,400. If they were to file…
A: The Tax rate schedules used are as follows for 2022 : Schedule X-Single If taxable income is…
Q: Sales Budget Smart Strike Company manufactures and sells soccer balls for teams of children in…
A: SALES BUDGET Sales Budget is the quantitative & Financial statement of Sales, Prepared prior to…
Q: Pharoah Inc. manufactures wood poles. Pharoah Inc. has two responsibility centres, harvesting and…
A: The decisions are made based on the contribution margin. The proposal that gives a higher…
Q: Deadwood Manufacturing bought three used machines in a $167,000 lump-sum purchase. An independent…
A: Appraised value refers to the property value evaluation grounded on the given point in time. And the…
Q: please explain question 6
A: Advertising cost refers to the cost which are kind of the financial accounting that covers the…
Q: Miller Company reported the following information in its 2020 financial statements ($ in millions):…
A: A contra account that nets against the total receivables shown on the balance sheet to reflect just…
Q: 1. Prepare a flexible budget performance report for July that includes revenue and spending…
A: A budget can be defined as a financial plan that is prepared and used by managers in order to…
Q: Terrance is age 72 and retired. Beginning in 2022, he must start taking minimum distributions from…
A: A Required Minimum Distribution (RMD) is the minimum amount that a person must withdraw from their…
Q: ou and your friend just jointly purchased a new home for $1.5 million. You are paying a imple…
A: Mortgage interest is paid on mortgage amount but that amount is deducted from the income tax expense…
Q: Jody Solan currently insures her home for 100 percent of its replaceme Parts B, C, and D of her…
A: Maximum dollar coverage is the highest dollar amount an insurance policy will pay out for a…
Q: Fun Town Amusement Park paid $500,000 for a concession stand. Fun Town started out depreciating the…
A: A change in estimated life typically refers to a revision in the expected duration of an asset or…
Q: Lloyd and Harry, equal partners, form the Ant World Partnership. During the year, Ant World had the…
A: When two or more people work together to accomplish a single goal or objective, they form a…
Q: quired" in the first account field.) View transaction list Journal entry worksheet < 1 2 Record the…
A: A trade discount is a reduction in the quoted price of a product or service offered to a buyer for…
Q: On January 1, 2023, Pubnico Marine Ltd. sold a lobster boat to a in exchange for a five-year…
A: A future series of payments or cash transfers that will be received or given in the future are…
Q: Barbara Wells is a first-year auditor for a large public accounting firm. She was assigned to audit…
A: An audit is an independent examination of financial statement which is performed by an auditor of…
Q: Which of the following statements is true related to the conversion of a regular corporation to a…
A: An American corporate structure called a limited liability company (LLC) shields its owners from…
Q: Red Rose Manufacturers Inc. is approached by a potential customer to fulfill a one-time-only special…
A: Contribution Margin per unit = Sales price per unit - Variable cost per unit
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in yar 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in yar 2 from the buyer. What is Russell’s realized gain on the transaction? What is Russell’s realized gain in year 0, year 1, and year 2?Ms. Cruz, a licensed real estate broker obtained a net listing of P6,500,000.00. She sold the property at a price which is inclusive of her 5% commission, capital gains tax and documentary stamps. The Deed of Sale provides that the buyer will pay for the transfer and registration fees. At how much was it sold?Chuck purchased a van for $24,000 to use exclusively in his plumbing business. He sold it four months later in the same year for $18,000. What is the amount of gain or loss, and where on Form 4797 does Chuck report the sale? (a) $6,000 gain; Part I. (b) $6,000 gain; Part II. (c) $6,000 loss; Part II. (d) $6,000 loss; Part III.
- in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of purchase and the date of the sale, Longworth depreciated the machine by $22,000. What are the amount and character of the gain or loss Longworth will recognize on the sale? What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000? What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $15,000?Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed Barbara's $20,000 mortgage on the property. What is the amount of Barbara's gain, and where on Form 4797 will she report the sale? (a) $10,000; Part I. (b) $10,000; Part II. (c) $20,000; Part II. (d) $20,000; Part III.Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed barbarous 20,000 mortgage on the property. What is the amount of Barbara's gain, and where on form 4797 will she report the sale?
- During the current year, TLI Corporation sells a tract of land for $90,000. The sale is made to Sophie, TLI Corporation's sole shareholder. TLI Corporation originally purchased the land five years earlier for $121,000. Read the requirements. Requirement a. What is the amount of gain or loss that TLI Corporation will recognize on the sale during the current year? First, calculate the gain or loss realized and then calculate the gain or loss recognized in the current year. (For a gain or loss with a zero value, enter $0 and select N/A.) Amount Gain or loss Gain or loss realized Gain or loss recognized Requirements a. What is the amount of gain or loss that TLI Corporation will recognize on the sale during the current year? b. Assume that in the following year, Sophie sells the land for $111,000. What is the amount of gain or loss Sophie will recognize? What are the tax consequences to TLI Corporation upon the subsequent sale by Sophie? c. Assume that in the following year, Sophie sells…During the current year, Daniel James exchanges land used in his business for a new parcel of land. Daniel's basis in the land is $18,000, and the land is subject to a mortgage of $8,000, which is assumed by the other party to the exchange. Daniel receives new land worth $22,000. Calculate Daniel's recognized gain on the exchange and his basis in the new land. Recognized gain $ Basis in the new land $In year O, 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.) 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 $68,250? 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 $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) AmountIn 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.) a. What is 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 $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…