A wholesale business with a December 31 year-end purchased new equipment on November 25, 2021, for $41,000. Before 2021, the business owned no other equipment. Required: a. What are the tax consequences if the business sells the equipment in 2023 for (a) $16,000? (b) $24,000? (c) $47,000? (Use a minus sign (-) when entering numbers that reduce UCC.) 2021 purchase 2021 CCA $ 41,000 2021 UCC 2022 CCA 2022 UCC 2022 UCC Situation A Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC $ 2022 UCC Situation B Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC $ 0 2022 UCC Situation C Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC Capital Gain Taxable Capital gain $ 0
A wholesale business with a December 31 year-end purchased new equipment on November 25, 2021, for $41,000. Before 2021, the business owned no other equipment. Required: a. What are the tax consequences if the business sells the equipment in 2023 for (a) $16,000? (b) $24,000? (c) $47,000? (Use a minus sign (-) when entering numbers that reduce UCC.) 2021 purchase 2021 CCA $ 41,000 2021 UCC 2022 CCA 2022 UCC 2022 UCC Situation A Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC $ 2022 UCC Situation B Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC $ 0 2022 UCC Situation C Less disposal Proceeds Interim UCC Balance $ 0 Ending UCC Capital Gain Taxable Capital gain $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
fill the table
Transcribed Image Text:A wholesale business with a December 31 year-end purchased new equipment on November 25, 2021, for $41,000. Before 2021,
the business owned no other equipment.
Required:
a. What are the tax consequences if the business sells the equipment in 2023 for (a) $16,000? (b) $24,000? (c) $47,000? (Use a
minus sign (-) when entering numbers that reduce UCC.)
2021 purchase
2021 CCA
$
41,000
2021 UCC
2022 CCA
2022 UCC
2022 UCC
Situation A
Less disposal Proceeds
Interim UCC Balance
$
0
Ending UCC
$
2022 UCC
Situation B
Less disposal Proceeds
Interim UCC Balance
$
0
Ending UCC
$
0
2022 UCC
Situation C
Less disposal Proceeds
Interim UCC Balance
$
0
Ending UCC
Capital Gain
Taxable Capital gain
$
0
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education