Hello tutor solve this question is accounting A Taxpayer exchanges a business equipment, which has anadjusted basis of $15,000, for a new equipment worth $12,000. Inaddition, the taxpayer receives cash of $7,000. What is therecognized gain or loss and the basis of the new equipment?a. $0 and $15,000b. $0 and $8,000c. $4,000 and $12,000d. $4,000 and $15,000

Step 1: Definition of Recognized Gain and Basis of New EquipmentWhen an exchange of business…

Answered: A Taxpayer exchanges a business…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 3DQ

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Determine whether the taxpayer has income that is subject to taxation in each of the following situations: a. Capital Motor Company is going out of business. As a result, June is able to purchase a car for 12,000; its original sticker price was 25,000. b. Chuck is the sole owner of Ransom, Inc., a corporation. He purchases a machine from Ransom for 10,000. Ransom had paid 50,000 for the machine, which was worth 30,000 at the time of the sale to Chuck. c. Gerry is an elementary school teacher. She receives the Teacher of the Month Award for February. As part of the award, she gets to drive a new car supplied by a local dealer for a month. The rental value of the car is 400 per month. d. Payne has worked for Stewart Company for the last 25 years. On the 25th anniversary of his employment with Stewart, he receives a set of golf clubs worth 1,200 as a reward for his years of loyal service to the company. e. Anna enters a sweepstakes contest that was advertised on the back of a cereal box, and wins 30,000. The prize will be paid out in 30 annual installments of 1,000. She receives her first check this year. f. Terry buys an antique vase at an estate auction for 780. Upon returning home, she accidentally drops the vase and finds that a 100 bill had been taped inside it.
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Hii expert please provide correct answer general Accounting
Taxpayer has assets = $10,000 and liabilities = $15,000, determine if taxpayer is insolvent and to which extent B D insolvent by $5,000 insolvent by $10,000 insolvent by $15,000 totally insolvent; it doesn't matter how much ←
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GRADUATED TAX TABLE UNDER TRAIN LAW (January 1, 2018 to December 31, 2022) Over But not over The Tax shall be Plus of Excess Over 250,000 250,000 400,000 20% 250,000 400,000 800,000 30,000 25% 400,000 800,000 2,000,000 130,000 30% 800,000 2,000,000 8,000,000 490,000 32% 2,000,000 8,000,000 2,410,000 35% 8,000,000
1. The following relates to taxpayer500,000 Interest expense200,000 interest income-promissory notesCompute the deductible expense 2. A taxpayer with net sales of P2,000,000 and cost of sales of P1,000,000 incurred P12,000 EAR expenses. Compute the allowable deduction for EAR expenses 3. The personal car of the taxpayer had the following data:5,000,000 Fair market value4,000,000 purchase price10 years estimated useful lifeWhat is the deductible annual depreciation expense?
A3 please help......
A Schedule B needs to be attached to the form 1040 if a taxpayer. 1. received over $1,500 of taxable interest 2. received $ 1,000 of taxable interest 3. received $ 2,000 from selled-financed mortage.
If a taxpayer has interest income of $5,500 and investment interest expenses of $6,000 in itemized deductions, what amount can the taxpayer deduct in investment interest expenses? *If zero, enter "0". 5500
Which of the following statements is incorrect? Assume that the rental activity is classified as ‘production-of-income.’ If the taxpayer sells the rental property later at a loss, the loss will be treated as a capital loss (i.e., $3,000/$1,500 deduction limit in the current year). An amount that would have been paid in an arm’s-length transaction is considered a reasonable amount as deduction. Payment (except for medical or educational expense) of another person’s obligation does not result in a tax deduction for the payer. Regarding the start-up costs, if the new business is in the same line of business as the existing one and if the new business is not launched, then none of the start-up costs are deductible. Payments for a speeding ticket are nondeductible. HELP

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