Fareed sells a piece of equipment used in a business for $31,500 during 2021. The equipment was purchased on July 1, 2019, at a cost of $22,000. Fareed has taken $6,600 of depreciation on the equipment. What are the amount and classification of the gain on the sale by Fareed? Group of answer choices $9,500 Section 1231 gain. $16,100 ordinary income under Section 1245. $16,100 Section 1231 gain. $6,600 ordinary

Q: Remy Corp uses revaluation method for a class of land. The company purchased theland on 1 July 2018…

A: Cost Model - As per relevant Provisions of AASB 116, in this model, once an item of Property, Plant,…

Q: What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1,…

A: In the domains of business and investing, depreciation deductions are frequently employed. They…

Q: Chaz Corporation has taxable income in 2023 of $1,312,450 for purposes of computing the $179 expense…

A: Section 179 of the Internal Revenue Code is a tax provision that allows businesses to deduct the…

Q: Chaz Corporation has taxable income in 2020 of $368,000 for purposes of computing the §179 expense…

A: Taxable Income:- When an individual earns income from the resources available, then it has to pay…

Q: None

A: Based on the information provided, Mike has a net capital gain of $1,300 for the current year.…

Q: Accounting During 2021, B&C owed the following assets. B&C sold the land, office building, and…

A: HY convention of dep menas when an asset is purcased in between of…

Q: On 30 April 2020, Business Taxpayer sold an office building it had placed in service on 1 August…

A: Depreciation - It is method of accounting to allocate cost of assets over a useful life of assets.

Q: At the beginning of its 2023 tax year, Hiram owned the following business assets: Date Placed in…

A: We will arrange all the given information in the simplest form1. We have given following table2. We…

Q: 1. During 2018, Axel Corporation purchases machinery (5-year property) for $120,000 and decides not…

A: Depreciation: The word "depreciation" refers to an accounting procedure that is used to spread the…

Q: Vikrambhai

A: Let's start with the office furniture:*   Office furniture:   *   Placed in Service: September 12…

Q: Accounts receivable Inventory Furniture and equipment: Cost Tax Basis $ 53,200 148,800 66,500

A: The process of collecting taxes from individuals and corporations is known as taxation, whereas Fair…

Q: Chaz Corporation has taxable income in 2023 of $1,312,300 for purposes of computing the §179 expense…

A: Depreciation permits the revenue produced by a fixed asset to offset a portion of its cost.…

Q: Chaz Corporation has taxable income in 2023 of $1,312,300 for purposes of computing the $179 expense…

A: Depreciation permits the revenue produced by a fixed asset to offset a portion of its cost.…

Q: Please help with provide correct answer

A: Step 1: Determine the Original Cost of the EquipmentFrank purchased the equipment for $50,000.Step…

Q: Crane Company purchased machinery for $786000 on January 1, 2019. Accumulated Depreciation was…

A: The accumulated depreciation is calculated as total deprecation charged till date. The book value of…

Q: In February 2021, Pietra acquired a new automobile for $82,000 and used the automobile 80% for…

A: When a business uses an automobile, it follows some rules allowable for depreciation deduction. The…

Q: Required: Calculate Mr Bodvin's minimum net property income to be included on his 2021 tax return.…

A: Alex Bodvin is an author who owns a business and rents out a house. He wants to know more about his…

Q: Rod Clooney purchases Agnes Mitchell’s sole proprietorship for $990,000 on August 15, 2019. The…

A: Amount realized is the amount received from the sale of an asset or financial instrument  It…

Q: Dean and Ellen Price are married and have a manufacturing business. They bought a piece of business…

A: MACRS DepreciationModified Accelerated Cost Recovery System (MACRS) is the tax-depreciation system…

Q: Nadia transfers to Hillside Corporation depreciable machinery originally costing $18,000 and now…

A: As per IRS, if a person transfer his property in a corporation only for stocks and immediately after…

Q: Ursula LLC purchased an automobile for $64,000 on July 5, 2022. What is Ursula's depreciation…

A: Working: An automobile maximum depreciation in the first year is the lesser of $11,200 or its MACRS…

Q: The only asset Bill purchased during 2021 was a new seven-year class asset. The asset, which was…

A: The term "maximum deduction" describes the maximum amount of costs or losses that may be deducted…

Q: Green Bank Corporation claimed $300,000 in Sec.179 epxense and $200000 in bonus depreciation in 2020…

A: Section 179 of the IRC allows businesses to take an immediate deduction for business expenses…

Q: Bussell Company exchanged the following assets during 2019: Feb. 1 Acquired a newer machine by…

A: When accounting is done on the p[rinciple of commercial substance, the assets value at which the…

Q: dont provide handqwriting solution..

A: To calculate Steve Chan's taxable capital gain, we need to subtract the cost of each asset from its…

Q: Furniture Equipment Machinery Date Placed in Service 6/19/17 5/2/16 9/30/16 Initial Cost $46,250…

A: Under MACRS, capitalized cost of an asset is recovered over a specific period via annual deductions.…

Q: Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On the date…

A: A "Selling of Business" refers to the sale of all or practically all of a person's stock or assets,…

Q: In 2021, Peter Quill had a 5 179 deduction carryover of $40,000. In 2022, Peter elected $ 179 for an…

A: Section 179 is a section used to claim a deduction for business expenses. According to this section,…

Q: Sol purchase lands as an investment on Jan 12, 2015 for $85,000. On Jan 31, 2019 Sold sold the land…

A: Nature of gain: 1 Long-term gain: It is the non-reoccurring and capital gain. Example : Gain on…

Q: a. McKenzie's § 179 expense deduction is $ for 2022. His § 179 carryover to 2023 is $ b. How would…

A: A deduction is an outflow that can be deducted from a taxpayer's gross income in order to decrease…

Q: Assume that Sivart Corporation has 2023 taxable income of $1,750,000 for purposes of computing the…

A: Depreciation is the term for the decline in value of tangible assets brought on by use over the…

Q: dont peovide handwriting solution ....

A: To calculate the taxable capital gain for tax purposes, we need to determine the capital gain or…

Q: EB Corporation, a C corporation, purchases a warehouse on August 1, 2007, for $ 1 MILLION Straight…

A: Long-term capital gains are those resulting from holding an asset for longer than a year before…

Q: Renata Corporation has a gain of $ § 1245 recapture X of which $ X is treated as ordinary income due…

A: First we need to determine the adjusted basis of the equipment using the formula below:

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.