3. Tinnell Industries had gross sales of $30,000 for the year. Its cost for the goods sold was $18,000. Returns and allowances amounted to $2,000. It purchased equipment normally selling for $10,000 at a 20% discount. Based on these facts, what is its gross income for the year 4. A taxpayer pays $200,000 for land and a building in a single transaction. At the time of the purchase, the land and building were appraised at $120,000 and $180,000, respectively. The taxpayer's depreciable basis in the building is: 5. A corporation exchanges machinery plus $20,000 cash for new machinery worth $34,000. At the time of the exchange, the corporation's adjusted basis in the machine it exchanges is $16,000 and its fair market value is $14,000. What amount will the corporation (a) recognize on the exchange and (b) what will be its depreciable basis in the new machine

3. Tinnell Industries had gross sales of $30,000 for the year. Its cost for the goods sold was $18,000. Returns and allowances amounted to $2,000. It purchased equipment normally selling for $10,000 at a 20% discount. Based on these facts, what is its gross income for the year 4. A taxpayer pays $200,000 for land and a building in a single transaction. At the time of the purchase, the land and building were appraised at $120,000 and $180,000, respectively. The taxpayer's depreciable basis in the building is: 5. A corporation exchanges machinery plus $20,000 cash for new machinery worth $34,000. At the time of the exchange, the corporation's adjusted basis in the machine it exchanges is $16,000 and its fair market value is $14,000. What amount will the corporation (a) recognize on the exchange and (b) what will be its depreciable basis in the new machine

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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