Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in her business: Sales Price Asset Building Equipment Cost $ 200,000 Accumulated Depreciation $ 52,000 23,000 $ 230,000 80,000 148,000 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.) Description Amount Taxable income Tax liability
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- ■ | ■ ■ - On 1 July 2019 Mary acquired a leather sofa for $21816. Mary borrowed $29,000 of the money from XYZ Bank. Answer: 598 The loan was a fixed interest loan on which Mary paid interest of $5,000. Mary sold it in September 2019 for $35403. Required: Calculate the Net Capital Gain, if any, to be included in Mary's assessable income for that FANG SE AN income year IN LA 700 ■ 7 W ■ ■ ■ ■ - ■ MASONS, IPOLITA BOTTELS ■ P ■ … ■ ■ " ■ ■ ■ ■ P ☐ ■ ■ ■ LA. What effect does the rental activity have on her AGI for the year? Plz don't copy answer B. Assuming that Alexa's AGI from other sources is $90,000, what effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property. C. Assuming that Alexa's AGI from other sources is $120,000, what effect does the rental activity have on Alexa's AGI? Alexa makes all decisions with respect to the property. D. Assume that Alexa's AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, $25,000 of long-term capital gain, and net rental income from another rental property in the amount of $15,000. What effect does the Cocoa Beach condo rental activity have on Alexa's AGI?This year Dan and Mike purchased realty for $218,500 and took title as equal tenants in common. However, Mike was able to provide only $53,500 of the purchase price and Dan provided the remaining $165,000. Required: a-1. Has Dan made a complete gift to Mike? a-2. What is the amount of the gift? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the gift? Amount of gift
- Self-Study Problem 2.13 A taxpayer (payor ex-spouse) is required to pay an ex-spouse (recipient ex-spouse) alimony of $12,000 per year. Determine how much alimony is deductible by the payor ex-spouse and how much alimony is recognized as income by the recipient ex-spouse based on the following information: If an answer is zero, enter "0". Details a. The payments are made in 2021 as part of a divorce decree executed in 2018. The divorce decree is modified in 2021 to explicitly apply the provisions of the TCJA. b. The payments are made in 2021 as part of a divorce decree executed in 2016. c. The payments are made in 2021 as part of a divorce decree executed in 2021. Deductible by payor Includable by recipient 00 00Exercise 15-19 (LO. 3, 4) In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: $fill in the blank 1Tax liability (round to the nearest dollar): $fill in the blank 2Give typing answer with explanation and conclusion Donna owns and operates a dress shop . In 2022, her total sales were$80,000. She refunded $950 to customers who were unsatisfied. Her cost of goods sold was $30,000 what is Donna's gross income on her schedule c, profit or loss from business (sole proprietorship)
- Hw.19. Sophia sold a painting that she held as an investment on an online auction website for $100. She bought the painting for $20 at a garage sale years ago. Sophia should report what amount as a capital gain on her Schedule D (Form 1040)? A. $0 B. $20 C. $80 D. $100Problem 7: Exclusions from income Annie Wilkes is a single taxpayer who reports the following transactions during 2022: ● At her part time job she uses the gym on the company premises that is available to all employees. The total value of the gym membership is $1,500 • She receives $700 a month from an annuity she purchased on 1/1/2020 for $50,000 when she was 35 years old (which is also the age she began receiving payments). The annuity will pay her for the rest of her life. • She received $20,000 from the University of Kansas. Of this, $2,000 represented a scholarship to cover tuition, $17,000 a stipend to assist with living expenses, and 1,000 for book purchases. She received a refund of $2,000 for a contribution to her health savings account (HSA) made in 2021. ● Required: How much of the above transactions will be excluded from Annie's income for 2022?Question 16 In 2020, Len has a salary of $40,700 from his job. He also has interest income of $400. Len is single and has no dependents. During the year, Len sold stock held as an investment for a $10,000 loss. Calculate the following amounts for Len: a. Adjusted gross income b. Standard deduction c. Taxable income d. Tax liability e. Explain the tax treatment of the loss from the stock sale
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