During the current year L sold his business and received $440,000 for its related franchise. The franchise had an original cost of $320,000 and the Class 14 UCC at the beginning of the current was $220,000. What is the total amount that is included in L’s net income for tax purposes in the current year with respect to the sale of the franchise? **wrong answers will get 10 dislikes, need a genuine and correct answer. do not copy from others

During the current year L sold his business and received $440,000 for its related franchise. The franchise had an original cost of $320,000 and the Class 14 UCC at the beginning of the current was $220,000. What is the total amount that is included in L’s net income for tax purposes in the current year with respect to the sale of the franchise? **wrong answers will get 10 dislikes, need a genuine and correct answer. do not copy from others

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter18: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 42P

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N1.
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Hart, an Individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. Problem 11-45 Part-e (Static) Required: e1. Now assume that Hart Is a C corporation. What are the amount and character of Its recognized gain or loss if the asset is a monresidential building sold for $450,000? e2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)? Answer is not complete. Complete this question by entering your answers in the tabs below. Required el Required e2 Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or…
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