Lily's taxable income before these transactions is $195,500.What are Lily's taxable income a Schedule for reference. (Do not round intermediate calculations. Round your answers to Description Taxable income Tax liability $ $ Amount 242,500 86,838

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$235,000
85,000
Description
Taxable income
Tax liability
Cost
$205,000
153,000
Lily's taxable income before these transactions is $195,500.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 answers to the nearest whole dollar amount.)
$
$
Amount
Accumulated
Depreciation
$57,000
28,000
242,500
86,838
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 $235,000 85,000 Description Taxable income Tax liability Cost $205,000 153,000 Lily's taxable income before these transactions is $195,500.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 answers to the nearest whole dollar amount.) $ $ Amount Accumulated Depreciation $57,000 28,000 242,500 86,838
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