3. Complete Moab Inc.'s Form 4797 for the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so
that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions
during the year. (Do not round intermediate computations.)
a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the
machine for $19,200 three years ago and has taken $8000 in depreciation.
b. Moab Inc. held stock in ABC Corp., which had a value of $12,000 at the beginning of the year. That same stock had a
value of $15,230 at the end of the year.
c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000.
d. Moab Inc. disposed of an office building with a fair market value of $75,000 for another office building with a fair
market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and
has taken $15,000 in depreciation.
e. Moab Inc. sold some land held for investment for $28,000. It originally bought the land for $32,000 two years ago.
f. Moab Inc. sold another machine for a note payable in four annual installments of $12,000. The first payment was
received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9,000 in
depreciation expense against the machine.
g. Moab Inc. sold stock it held for eight years for $2,750. It originally purchased the stock for $2100.
h. Moab Inc. sold another machine for $7,300. It originally purchased this machine six months ago for $9,000 and has
claimed $830 in depreciation expense against the asset.
3. Complete Moab Inc.'s Form 4797 for the year.
(Input all the values as positive numbers. Use 2020 tax rules regardless of year on tax form.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc1c74ba3-fdef-447f-ab25-4c64e7e78a42%2Fca127ebc-38f7-4ad5-af0a-428bcf6f81a0%2Ffeq8qz_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so
that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions
during the year. (Do not round intermediate computations.)
a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the
machine for $19,200 three years ago and has taken $8000 in depreciation.
b. Moab Inc. held stock in ABC Corp., which had a value of $12,000 at the beginning of the year. That same stock had a
value of $15,230 at the end of the year.
c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000.
d. Moab Inc. disposed of an office building with a fair market value of $75,000 for another office building with a fair
market value of $55,000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and
has taken $15,000 in depreciation.
e. Moab Inc. sold some land held for investment for $28,000. It originally bought the land for $32,000 two years ago.
f. Moab Inc. sold another machine for a note payable in four annual installments of $12,000. The first payment was
received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9,000 in
depreciation expense against the machine.
g. Moab Inc. sold stock it held for eight years for $2,750. It originally purchased the stock for $2100.
h. Moab Inc. sold another machine for $7,300. It originally purchased this machine six months ago for $9,000 and has
claimed $830 in depreciation expense against the asset.
3. Complete Moab Inc.'s Form 4797 for the year.
(Input all the values as positive numbers. Use 2020 tax rules regardless of year on tax form.)
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