Emily Spring sold the following assets in 2021.  Asset  Original Cost  Proceeds of Disposition  Sportscar  $24,000  $10,000  Antique cabinet  $1,000  $2,000  A rare coin  $100  $1,100  Shares in a public corporation  $4,000  $3,000  Canoe  $500  $600  Limited edition painting  $800  $2,500

Q: On April 27, 2021, BatoBatoPik purchased for P6,000,000 a warehouse building and the land on which…

A: Warehouse should be recorded at = Total amount paid x Current appraised value of warehouse / Total…

Q: Wellsley Corporation purchased an old building and the land on which it is located for $70,000. The…

A: The capitalized cost is the cost of fixed assets that is reported in the balance sheet of the…

Q: Maple Corporation owns several pieces of highly valued paintings that are on display in This year,…

A: Charitable Contribution Companies are permitted to deduct contributions made for charitable causes.…

Q: Jane received a gross condemnation award of $50,000. Of this, $40,000 was for the condemned property…

A: Condemnation is the legal procedure of taking private property for public use without the owner's…

Q: The Taffy Trust is a simple trust. Sean is its sole beneficiary. In the current year, the trust…

A: Depreciation will not comes under accounting income

Q: I sol my property for $5,000,000. I purchased the property for $4,900,000 with partial sale of…

A: To calculate your adjusted basis, you need to start with the original purchase price and add any…

Q: During the current year, Jeff sells a tract of land for $750,000 The property was received as a gift…

A: Sure, here's the explanation without the use of LaTeX:### Information Provided1. **Sale of Property…

Q: Zack died on November 15th. The assets in his estate were valued at the date of death and on the…

A: AssetDate of death value Alternate Valuation date value…

Q: Rebecca Botson purchased a personal residence for $286,000. It had a fair market value of $300,000…

A: The Internal Revenue Service (IRS) allows individuals to deduct personal casualty and theft losses…

Q: Belvidere Self Storage purchased land, paying $165,000 cash as a down payment and signing a $180,000…

A: COST ALLOCATION When item of cost are Identifiable directly with some products or departments such…

Q: Parmida sold a Class 1 depreciable asset to a corporation that she controls in exchange for a…

A: Section 85 election is used to reduce or minimize the liability of tax by transferring the eligible…

Q: Pearl Limited purchased an asset at a cost of $20,000 on March 1, 2023. The asset has a useful life…

A: Capital cost allowance (CCA) is a deduction that can be claimed by taxpayers for several years for…

Q: mary recieved a gift of income producing property with an adjusted basis of 49,000 to the donor and…

A: At first, we need to figure out the adjusted basis of property to figure out the recognized gain or…

Q: Bart's investment property was condemned. His basis in the property was $100000. He received a net…

A: A gain or loss is recognized while comparing the cash received against the sale of the property with…

Q: Taxpayer T built

A: A recognized gain is the profit you make from selling an asset. Recognized gains are different…

Q: Adrian contributed an antique vase he had owned for 25 years to a museum. At the time of the…

A: The objective of the question is to determine the amount Adrian can deduct from his taxes due to his…

Q: Ormond beach received a gift of corporate stock valued at $1,200,000 on the date of the gift. The…

A: Ormond Beach handles a big donation of stocks for a long-term fund, called a Perpetual Endowment,…

Q: Way Corporation disposed of the following tangible personal property assets in the current year.…

A: Depreciation: The wear and tear of the fixed asset during the useful life of the asset is recorded…

Q: During the year, FT Corporation sells a building and receives $800,000.  The building was originally…

A: Please find the answer to the above question below:

Q: answer must be in proper format or i will give down vote

A: The capital gain or loss for each item is calculated as the proceeds from the sale minus the cost of…

Q: HMI Building Ltd. (HBL) purchased a piece of vacant land on March 1, 2020, for $345,000, and…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Herman purchased undeveloped land for $75,000 on July 10, 2014, and has held it as an investment…

A: Requirement:-a Calculation of the Herman's charitable contribution if he donates it to a private…

Q: It will be taxed at the tax rates that apply to: Long-term capital gains. Ordinary income. The sale…

A: Tax rate refers to the percentage at which income, profits, or transactions are taxed by…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.