In 2022, Skylar sold equipment for $20,000 cash and a $300,000 note due in two years. Skylar's cost of the property was $250,000, and he had deducted depreciation of $150,000. a. Under the installment sales method, what is Skylar's total realized gain? 220,000 ✓ b. In the year of sale, how much 5 1245 gain does Skylar recognize? $ 10,000 X How much gain can be deferred under the installment sale method? 60,000 X

In 2022, Skylar sold equipment for $20,000 cash and a $300,000 note due in two years. Skylar's cost of the property was $250,000, and he had deducted depreciation of $150,000. a. Under the installment sales method, what is Skylar's total realized gain? 220,000 ✓ b. In the year of sale, how much 5 1245 gain does Skylar recognize? $ 10,000 X How much gain can be deferred under the installment sale method? 60,000 X

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Kimmy brought a couch worth Php 10,000 and 10 years later, he sold it for Php 8,000. If the depreciation continues at the same rate, how much would be the worth of the couch in four years more?
Ali spent $850,000 to buy an apartment building. After deducting all operatingexpenses, real estate taxes, and insurance, he receives $69,010 in the first year, $65,003 in the second year, $65,070 in the third year, and $85,000 in the fourth year. Calculate the average rate of return, and conclude your results with your comments about the ARR for the given situation.
2. Suppose that Carolyn knows that her car straight line depreciates at a rate of $3,500 per year over a 10-year period. What was the original price of her car?
Duane purchased a painting for $9800 at the beginning of 2009. He received annual payments of $550 at the end of each year through 2014 by putting up the painting for show. At the end of 2014, he sells the painting for $10,000. Compute the yield (internal rate of return) Duane earned on his painting purchase.
Khalid purchases a new truck for work! If he paid $63,703 for it and it depreciates in value by 50% in the first 7 years, the value of the truck after 7 years is $ (Remember that money is expressed to two decimal places). ?
If Kim buys a car for $30,000 with an estimated life of 5 years, with a residual value of $5,000, what is the book value at the end of year 4? Assume straight-line depreciation.
please answer within 30 minutes..
You bought a 5-year property class equipment for $20,000.00 and sold it after 3 years. Assume that the selling price of the equipment decreases uniformly by 5% each year. The equipment generated following income: $5,000, $5,500, and $4,500 in years 1 through 3, respectively. 5. Fill up the table below to show the after tax cash flow. Assume that you are already in the 28% income tax bracket. Use MACRS depreciation. Assume that depreciation recapture/loss is taxed at 15%. After tax cash flow Yr. Income Depreciation Таxable Income Income Тах b) Write down the equation to determine the after tax rate of return. DO NOT compute the rate of return.
Gold Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is: Choose the closest answer. A) $14,000. B) $11,468. C) $12,100. D) $10,699. PVA 9% 4 pds 3.23972, PVA 9% 5 pds 4,58720 PV 1 9% 4 pds .72451 . PV 1 % 5 pds .64993
Mr. and Mrs. Marasigan bought a house and lot worth P675,000.00 at Villa San Mateo. They made an initial payment of P60,000.00 How much was the yearly amortization if they agreed to pay for 15 years?A. P40,000.00 B. P41,000.00C. P45,000.00 D. P48,000.00
Howard bought a $ 10,000.00 GIC bearing interest at 7% c.a due principal and interest in 10 years. He sold the GIC after 50 months to an investor who expects to earn 5% c.s.a. How much did the investor pay Howard for the GIC?