1Corinne sells the following personal items in 2021:Necklace: Corinne purchased a necklace for $800 a few years ago and sells it for $1,200 in 2020.Antique Desk: Corinne had an antique desk that she bought a number of years ago for $1,050. In 2021, she was able to sell the desk to an antique dealer for $1,300.Rare Manuscript: Corinne sold a rare manuscript to a museum in 2021 for $1,300. She had acquired it many years ago for $1,800.Bicycle: Corinne sold her beloved mountain bike for $800 in 2021. She had purchased the premium bike a few yearsAssume Corinne has no other capital gains or losses in 2021.Required:A. Calculate any Taxable Capital Gain or Allowable Capital Loss (enter a 0 if none) that Corinne will include in her 2021 Net Income for Tax Purposes calculation with respect to each item. If the item is Personal Use Property, enter your answer in the PUP column. If the item is Listed Personal Property, enter your answer into the LPP column. Leave any unused squares blank. PUPLPPNecklace[a][b]Desk[c[d]Manuscript[e][f]Bicycle[g][h]

Capital Gain and LossThe amount earned on the sale of long-term assets like investment, tangible…

Answered: 1 Corinne sells the following personal…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Corinne sells the following personal items in 2021:

Necklace: Corinne purchased a necklace for $800 a few years ago and sells it for $1,200 in 2020.
Antique Desk: Corinne had an antique desk that she bought a number of years ago for $1,050. In 2021, she was able to sell the desk to an antique dealer for $1,300.
Rare Manuscript: Corinne sold a rare manuscript to a museum in 2021 for $1,300. She had acquired it many years ago for $1,800.
Bicycle: Corinne sold her beloved mountain bike for $800 in 2021. She had purchased the premium bike a few years
Assume Corinne has no other capital gains or losses in 2021.

Required:

A. Calculate any Taxable Capital Gain or Allowable Capital Loss (enter a 0 if none) that Corinne will include in her 2021 Net Income for Tax Purposes calculation with respect to each item. If the item is Personal Use Property, enter your answer in the PUP column. If the item is Listed Personal Property, enter your answer into the LPP column. Leave any unused squares blank.

	PUP	LPP
Necklace	[a]	[b]
Desk	[c	[d]
Manuscript	[e]	[f]
Bicycle	[g]	[h]

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