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Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2023, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $ 230,000 $ 200,000 $ 52,000 Equipment 80,000 148,000 23,000 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2023, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $ 230,000 $ 200,000 $ 52,000 Equipment 80,000 148,000 23,000 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2023, she sells the following long-term assets used in her business:

Asset Sales Price Cost Accumulated Depreciation
Building $ 230,000 $ 200,000 $ 52,000
Equipment 80,000 148,000 23,000

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.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.

2023 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 11,000 $ 44,725 $ 95,375 $ 182,100 $ 231,250 $ 578,125 S $ 22,000 $ 89,450 $ 190,750 $364,200 $ 462,500 $ 693,750 $ 11,000 $ 44,725 $ 95,375 S 182,100 $ 231,250 $578,125 Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: The tax is: 0 $ 0 $ 15,700 $ 59,850 $ 95,350 $ 182,100 $231,250 $ 578,100 $ 22,000 S 89,450 $ 190,750 $364,200 S 462,500 $ 693,750 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 15,700 $ 59,850 $ 95,350 $ 182,100 $ 231,250 $578,100 10% of taxable income $1,100 plus 12% of the excess over $11,000 $5,147 plus 22% of the excess over $44,725 $16,290 plus 24% of the excess over $95,375 $37,104 plus 32% of the excess over $182,100 $52,832 plus 35% of the excess over $231,250 $174,238.25 plus 37% of the excess over $578,125 10% of taxable income $2,200 plus 12% of the excess over $22,000 $10,294 plus 22% of the excess over $89,450 $32,580 plus 24% of the excess over $190,750 $74,208 plus 32% of the excess over $364,200 $105,664 plus 35% of the excess over $462,500 $186,601.5 plus 37% of the excess over $693,750 The tax is: 10% of taxable income $1,570 plus 12% of the excess over $15,700 $6,868 plus 22% of the excess over $59,850 $14,678 plus 24% of the excess over $95,350 $35,498 plus 32% of the excess over $182,100 $51,226 plus 35% of the excess over $231,250 $172,623.5 plus 37% of the excess over $578,100
Transcribed Image Text:2023 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: S 0 $ 11,000 $ 44,725 $ 95,375 $ 182,100 $ 231,250 $ 578,125 S $ 22,000 $ 89,450 $ 190,750 $364,200 $ 462,500 $ 693,750 $ 11,000 $ 44,725 $ 95,375 S 182,100 $ 231,250 $578,125 Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse If taxable income is over: But not over: The tax is: 0 $ 0 $ 15,700 $ 59,850 $ 95,350 $ 182,100 $231,250 $ 578,100 $ 22,000 S 89,450 $ 190,750 $364,200 S 462,500 $ 693,750 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 15,700 $ 59,850 $ 95,350 $ 182,100 $ 231,250 $578,100 10% of taxable income $1,100 plus 12% of the excess over $11,000 $5,147 plus 22% of the excess over $44,725 $16,290 plus 24% of the excess over $95,375 $37,104 plus 32% of the excess over $182,100 $52,832 plus 35% of the excess over $231,250 $174,238.25 plus 37% of the excess over $578,125 10% of taxable income $2,200 plus 12% of the excess over $22,000 $10,294 plus 22% of the excess over $89,450 $32,580 plus 24% of the excess over $190,750 $74,208 plus 32% of the excess over $364,200 $105,664 plus 35% of the excess over $462,500 $186,601.5 plus 37% of the excess over $693,750 The tax is: 10% of taxable income $1,570 plus 12% of the excess over $15,700 $6,868 plus 22% of the excess over $59,850 $14,678 plus 24% of the excess over $95,350 $35,498 plus 32% of the excess over $182,100 $51,226 plus 35% of the excess over $231,250 $172,623.5 plus 37% of the excess over $578,100
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