Provide correct MCQ option.?? Accounting A corporation disposed of equipment it had originallypurchased for $28,000. The equipment had $21,000 worth ofaccumulated depreciation. The corporation should recognizea(n):a. $28,000 lossb. $0 gain or lossc. $21,000 lossd. $7,000 loss

Step 1: Definition of Book ValueThe book value of an asset is the value at which it is recorded on…

Answered: A corporation disposed of equipment it…

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter20: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 25P

See similar textbooks

Similar questions

Since its formation, Roof Corporation has incurred the following net Section 1231 gains and losses. Year 1 $ (12,000) Net Section 1231 loss 10,500 Net Section 1231 gain (14,000) Net Section 1231 loss Year 2 Year 3 a. In year 4, Roof sold only one asset and recognized a $7,500 net Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary? b. In year 5, Roof sold one asset and recognized a $9,000 net Section 1231 gain. How much of this gain is treated as capital, and how much is ordinary?
Answer
Kk.417.
Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015accumulated tax depreciation. In each of the following cases, compute OCS’srecaptured ordinary income and Section 1231 gain or loss on the sale.Required:a. Amount realized was $10,600.b. Amount realized was $13,600.c. Amount realized was $18,100.d. Amount realized was $26,100.Note: For all requirements, losses should be indicated with a minus sign. Leave nocell blank. Enter "0" for cells that do not have an amount.
LO.3 Bronze Corporation has 100,000 of active income, 55,000 of portfolio income, and a 55,000 passive activity loss. Under what circumstances is Bronze prohibited from deducting the loss? Allowed to deduct the loss?
10
Chaz Corporation has taxable income in 2023 of $1,312,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $780,000 Computer equipment February 10 930,000 Delivery truck August 21 68,000 Qualified real property (MACRS, 15 year, 150% DB) September 30 1,500,000 Total $ 3,278,000 What is the maximum total depreciation deduction that Chaz may deduct in 2023?
A newly formed corporation received the following assets in exchange for stock: Appreciation Basis FMV (Built in Loss) Adjusted Basis Equipment 300,000 250,000 Land 400,000 430,000 Trucks/Other 400,000 320,000 Building 400,000 220,000 What is the corporation’s adjusted basis of each asset to the corporation? You must show your calculations.
None
This year, Sigma, Incorporated generated $637,500 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Basis $ 165,200 110,800 Accumulated Depreciation $0 88,640 223,500 206,000 Marketable securities Production equipment Business realty: Land Building. "Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $169,400 rather than $73,750. Complete this question by entering your answers in the tabs below. Sale Price $ 73,750 38,000 0 61,800 236,750 231,000 Required A Required B Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. Taxable income
During the year, FT Corporation sells a building and receives $800,000. The building was originally purchased for $500,000. FT properly took $300,000 of MACRS (straight-line) depreciation. Question 17 options: FT has Sec.1250 depreciation recapture of $300,000. FT has a realized gain of $300,000 FT recognizes a Sec. 1231 gain of $600,000. FT recognizes ordinary income of $60,000 and a Sec. 1231 gain of $540,000 None of the above.
30. A building previously occupied by Grand Company with a cost of P10 million and an accumulated depreciation of P5.5 million is reclassified as investment property. At the time of reclassification, the building has a fair value of P5 million. Using the fair value model, upon reclassification to investment property, at what amount should Grand record the investment property and what amount of gain is recognized in profit or loss, respectively? P4.5 million and P500,000 P5 million and PO P5 million and P500,000 P4.5 million and PO

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SEE MORE TEXTBOOKS

A corporation disposed of equipment it had originally purchased for $28,000. The equipment had $21,000 worth of accumulated depreciation. The corporation should recognize a(n): a. $28,000 loss b. $0 gain or loss c. $21,000 loss d. $7,000 loss