Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. Asset Realized Gain or Recognized Gain or §1245 Ordinary $291 Ordinary §1231 Gain or (Loss) (Loss) Income Income (Loss) Ordinary Income or (Loss) Capital Gain or (Loss) 1a $ 18,1000 $ 0 > $ 0 $ 0 $ 0 $ 0 $ 0 1b 0 0 0 0 0 1c 6,000 0 × 0 0 0 6,000 0 1d 0 × 0 ☑ 0 0 0 × 0 1e 0 7,800 0 0 0 7,800 × 7,800 1f 0 0 × 0 1g 1,650 1,650 0 0 0 0 1,650 1h 0 0 0 0 0 0 0 Totals $ 25,750 $ 9,450 $ 0 $ 0 $ 13,800 $ 9,450 Required 1 Required > 8 00 Part 1 of 2 5 points eBook Print References Moab Incorporated 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. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $33,300 cash. It originally bought the machine for $23,200 three years ago and has taken $8,000 in depreciation. b. Moab Incorporated held stock in ABC Corporation, which had a value of $32,000 at the beginning of the year. That same stock had a value of $35,230 at the end of the year. c. Moab Incorporated sold some of its inventory for $11,000 cash. This inventory had a basis of $5,000. d. Moab Incorporated disposed of an office building with a fair market value of $95,000 for another office building with a fair market value of $71,000 and $24,000 in cash. It originally bought the office building seven years ago for $82,000 and has taken $15,000 in depreciation. e. Moab Incorporated sold some land held for investment for $25,000. It originally bought the land for $32,800 two years ago. f. Moab Incorporated sold another machine for a note payable in four annual installments of $22,000. The first payment was received in the current year. It originally bought the machine two years ago for $72,000 and has claimed $11,000 in depreciation expense against the machine. g. Moab Incorporated sold stock it held for eight years for $4,750. It originally purchased the stock for $3,100. h. Moab Incorporated sold another machine for $11,300. It originally purchased this machine six months ago for $12,000 and has claimed $530 in depreciation expense against the asset. Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. §1231 Netting Process: §1231 gain §1231 loss Net §1231 gain Nonrecaptured §1231 losses Net §1231 gain Ordinary Income: §1245 recapture $291 recapture Ordinary income Ordinary loss Ordinary income from §1231 netting Total Capital Gains and Losses: Capital gain Capital loss Net capital gain < Required 1 Required 2 < Show less▲

Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. Asset Realized Gain or Recognized Gain or §1245 Ordinary $291 Ordinary §1231 Gain or (Loss) (Loss) Income Income (Loss) Ordinary Income or (Loss) Capital Gain or (Loss) 1a $ 18,1000 $ 0 > $ 0 $ 0 $ 0 $ 0 $ 0 1b 0 0 0 0 0 1c 6,000 0 × 0 0 0 6,000 0 1d 0 × 0 ☑ 0 0 0 × 0 1e 0 7,800 0 0 0 7,800 × 7,800 1f 0 0 × 0 1g 1,650 1,650 0 0 0 0 1,650 1h 0 0 0 0 0 0 0 Totals $ 25,750 $ 9,450 $ 0 $ 0 $ 13,800 $ 9,450 Required 1 Required > 8 00 Part 1 of 2 5 points eBook Print References Moab Incorporated 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. a. Moab Incorporated sold a machine that it used to make computerized gadgets for $33,300 cash. It originally bought the machine for $23,200 three years ago and has taken $8,000 in depreciation. b. Moab Incorporated held stock in ABC Corporation, which had a value of $32,000 at the beginning of the year. That same stock had a value of $35,230 at the end of the year. c. Moab Incorporated sold some of its inventory for $11,000 cash. This inventory had a basis of $5,000. d. Moab Incorporated disposed of an office building with a fair market value of $95,000 for another office building with a fair market value of $71,000 and $24,000 in cash. It originally bought the office building seven years ago for $82,000 and has taken $15,000 in depreciation. e. Moab Incorporated sold some land held for investment for $25,000. It originally bought the land for $32,800 two years ago. f. Moab Incorporated sold another machine for a note payable in four annual installments of $22,000. The first payment was received in the current year. It originally bought the machine two years ago for $72,000 and has claimed $11,000 in depreciation expense against the machine. g. Moab Incorporated sold stock it held for eight years for $4,750. It originally purchased the stock for $3,100. h. Moab Incorporated sold another machine for $11,300. It originally purchased this machine six months ago for $12,000 and has claimed $530 in depreciation expense against the asset. Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary. 2. From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years. Complete this question by entering your answers in the tabs below. Required 1 Required 2 From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years. Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign. §1231 Netting Process: §1231 gain §1231 loss Net §1231 gain Nonrecaptured §1231 losses Net §1231 gain Ordinary Income: §1245 recapture $291 recapture Ordinary income Ordinary loss Ordinary income from §1231 netting Total Capital Gains and Losses: Capital gain Capital loss Net capital gain < Required 1 Required 2 < Show less▲

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Required:

Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be §1231, capital, or ordinary.
From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from previous years.

8
00
Part 1 of 2
5
points
eBook
Print
References
Moab Incorporated 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.
a. Moab Incorporated sold a machine that it used to make computerized gadgets for $33,300 cash. It originally bought the
machine for $23,200 three years ago and has taken $8,000 in depreciation.
b. Moab Incorporated held stock in ABC Corporation, which had a value of $32,000 at the beginning of the year. That
same stock had a value of $35,230 at the end of the year.
c. Moab Incorporated sold some of its inventory for $11,000 cash. This inventory had a basis of $5,000.
d. Moab Incorporated disposed of an office building with a fair market value of $95,000 for another office building with a
fair market value of $71,000 and $24,000 in cash. It originally bought the office building seven years ago for $82,000
and has taken $15,000 in depreciation.
e. Moab Incorporated sold some land held for investment for $25,000. It originally bought the land for $32,800 two years
ago.
f. Moab Incorporated sold another machine for a note payable in four annual installments of $22,000. The first payment
was received in the current year. It originally bought the machine two years ago for $72,000 and has claimed $11,000 in
depreciation expense against the machine.
g. Moab Incorporated sold stock it held for eight years for $4,750. It originally purchased the stock for $3,100.
h. Moab Incorporated sold another machine for $11,300. It originally purchased this machine six months ago for $12,000
and has claimed $530 in depreciation expense against the asset.
Required:
1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine
whether the gain/loss recognized will be §1231, capital, or ordinary.
2. From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and the net
capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231 losses from
previous years.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
From the recognized gains/losses determined in part 1, determine the net §1231 gain/loss, the net ordinary gain/loss, and
the net capital gain/loss Moab will recognize on its tax return. Moab Incorporated also has $6,000 of nonrecaptured net §1231
losses from previous years.
Note: Do not round intermediate computations. Loss amounts should be indicated by a minus sign.
§1231 Netting Process:
§1231 gain
§1231 loss
Net §1231 gain
Nonrecaptured §1231 losses
Net §1231 gain
Ordinary Income:
§1245 recapture
$291 recapture
Ordinary income
Ordinary loss
Ordinary income from §1231 netting
Total
Capital Gains and Losses:
Capital gain
Capital loss
Net capital gain
< Required 1
Required 2
<
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