Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2020, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $230,000 80,000 Cost $200,000 148,000 Description Taxable income Tax liability Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Accumulated Depreciation $52,000 23,000 Amount $ 227,500 $ 50,050
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2020, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $230,000 80,000 Cost $200,000 148,000 Description Taxable income Tax liability Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Accumulated Depreciation $52,000 23,000 Amount $ 227,500 $ 50,050
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2020, she sells the following long-term assets used in
her business:
Asset
Building
Equipment
Sales Price
$230,000
80,000
Description
Cost
$200,000
148,000
Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate
Schedule for reference. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)
Taxable income
Tax liability
Accumulated
Depreciation
$52,000
23,000
Amount
$ 227,500
$ 50,050 x
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