needed help please provide help with this question Hurd Company acquired a building valued at $154,000 forproperty tax purposes in exchange for 10,000 shares of its $4 parcommon stock. The stock is widely traded and sells for $19 pershare. At what amount should the building be recorded by HurdCompany?a. $40,000b. $150,000c. $190,000d. $154,000

Step 1: Definition of Plant Assets:Plant assets are acquired by a business entity in order to obtain…

Answered: Hurd Company acquired a building valued…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 8DQ

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Kansas Company acquired a building valued at $210,000 for property tax purposes in exchange for 12,000 shares of its $5 par common stock. The stock is widely traded and sold for $15 per share. At what amount should the building be recorded by Kansas Company? $180,000 $210,000 $60,000 $120,000
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Financial Accounting
General Accounting
This year, Sigma Inc. generated $662,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Sale Price O$ 75,000 41,750 Acc. Basis Depr.* $ 149,600 $ 103,600 Marketable securities Production equipment Business realty: Land Building 82,880 237,000 270,000 247,250 210,500 81,000 *Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $159,200 rather than $75,000.
This year, Sigma, Incorporated generated $637,500 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Initial Basis $ 165,200 110,800 Accumulated Depreciation $0 88,640 223,500 206,000 Marketable securities Production equipment Business realty: Land Building. "Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $169,400 rather than $73,750. Complete this question by entering your answers in the tabs below. Sale Price $ 73,750 38,000 0 61,800 236,750 231,000 Required A Required B Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. Taxable income
Firm OCS sold business equipment with a $20,000 initial cost basis and $7,315accumulated tax depreciation. In each of the following cases, compute OCS’srecaptured ordinary income and Section 1231 gain or loss on the sale.Required:a. Amount realized was $10,000.b. Amount realized was $13,000.c. Amount realized was $17,500.d. Amount realized was $22,500
On January 1, 20X5, Spring Company purchased a machine with an expected economic life of ten years. On January 1, 20X8, Spring sold the machine to Peterson Corporation and recorded the following entry: Cash Accumulated Depreciation Machine Gain on Sale of Equipment O $40,000. Account O $28,000. O $32,000. O $140,000. Debit 350,000 120,000 Peterson Corporation holds 80 percent of Spring's voting shares. Spring reported net income of $200,000, and Peterson reported income from its own operations of $380,000 for 20X8. There is no change in the estimated economic life of the equipment as a result of the intercorporate transfer. Based on the preceding information, income assigned to the noncontrolling interest in the 20X8 consolidated income statement will be: Credit 400,000 70,000
Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015accumulated tax depreciation. In each of the following cases, compute OCS’srecaptured ordinary income and Section 1231 gain or loss on the sale.Required:a. Amount realized was $10,600.b. Amount realized was $13,600.c. Amount realized was $18,100.d. Amount realized was $26,100.Note: For all requirements, losses should be indicated with a minus sign. Leave nocell blank. Enter "0" for cells that do not have an amount.
A28
This year, Sigma Incorporated generated $662,250 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months: Marketable securities Production equipment Business realty: Land Building Accumulated Initial Basis Depreciation* $ 149,600 103,600 Required A Required B 237,000 270,000 $0 82,880 Taxable income 81,000 *Through date of sale. Required: a. Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses. b. Recompute taxable income assuming that Sigma sold the securities for $159,200 rather than $75,000. Sale Price $ 75,000 41,750 Complete this question by entering your answers in the tabs below. 247,250 210,500 Compute Sigma's taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses.

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