Dean and Ellen Price are married and have a manufacturing business. They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019 They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019. On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is $20,000. His 2019 Business income and expenditures (Schedule -C): Sales Cost of goods sold Other business expenses (incl. deprecation taken on the storage building) Office tables In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below. Office chairs Marketable securities Land held for investment Placed in Service / Purchased on 4/4/2018 3/1/2015 2/1/2019 7/1/2018 Sold on 10/16/2019 For $2,900 11/8/2019 For $4,000 12/1/2019 For $20,000 11/29/2019 For $48,000 Initial Cost $3,000 $8,000 $12,000 $45,000 2019 Depr. Amount $375 $1,000 $0 $0 $825 Accumulated Depreciation. (Depr. Allowed) $2,200 $ 657,500 $0 $315,000 $ 140,000 $0 Tax Basis= Initial Cost-Depr Allowed In 2019 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000. ✓ They also has a short-term capital loss carryover of $10,000 from 2009.
Dean and Ellen Price are married and have a manufacturing business. They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019 They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019. On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is $20,000. His 2019 Business income and expenditures (Schedule -C): Sales Cost of goods sold Other business expenses (incl. deprecation taken on the storage building) Office tables In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below. Office chairs Marketable securities Land held for investment Placed in Service / Purchased on 4/4/2018 3/1/2015 2/1/2019 7/1/2018 Sold on 10/16/2019 For $2,900 11/8/2019 For $4,000 12/1/2019 For $20,000 11/29/2019 For $48,000 Initial Cost $3,000 $8,000 $12,000 $45,000 2019 Depr. Amount $375 $1,000 $0 $0 $825 Accumulated Depreciation. (Depr. Allowed) $2,200 $ 657,500 $0 $315,000 $ 140,000 $0 Tax Basis= Initial Cost-Depr Allowed In 2019 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000. ✓ They also has a short-term capital loss carryover of $10,000 from 2009.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please answer the following:
Select Properties Sold that are Section 1245: There are mulitple answers please select all the correct ones
Wine Collection
Marketable Securities
Office Tables
Business Equipment
Land of Investment
Truck
Office Chairs
Storage Building
Transcribed Image Text:+
Dean and Ellen Price are married and have a manufacturing business.
They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use
half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019
They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for
$25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate
the MACRS depreciation on the truck for 2018 and 2019.
On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased
the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is
$20,000.
His 2019 Business income and expenditures (Schedule -C):
Sales
Cost of goods sold
Other business expenses (incl. deprecation taken on the storage building)
Office tables
In 2019 Dean also sold various assets. The information about the selling price and depreciation of the
property is listed below.
Office chairs
Marketable
securities
Land held for
investment
Placed in
Service /
Purchased
on
4/4/2018
3/1/2015
2/1/2019
7/1/2018
Sold on
10/16/2019
For $2,900
11/8/2019
For $4,000
12/1/2019
For $20,000
11/29/2019
For $48,000
Initial Cost
$3,000
$8,000
$12,000
$45,000
2019 Depr.
Amount
$375
$1,000
$0
$0
$825
Accumulated
Depreciation.
(Depr. Allowed)
$2,200
$ 657,500
$0
$ 315,000
$ 140,000
$0
Tax Basis= Initial
Cost - Depr.
Allowed
In 2019 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000.
✓ They also has a short-term capital loss carryover of $10,000 from 2009.
U
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