General Accounting Question please answer Mike owns a car repair shop called Precision Auto Services. During thepast year, Mike sold his facility to purchase a larger garage with extraservice bays.-Sales Proceeds from the Buyer = $180,000-Sales Commission Paid to Broker = $8,000-Original Cost of the Building = $140,000-Accumulated Depreciation for Tax Purposes = $20,500What is Mike's realized gain or loss on the sale?

Step 1: Define Realized Gain or Loss on SaleA Realized Gain or Loss on Sale refers to the financial…

Answered: Mike owns a car repair shop called…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 52P

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Nicky receives a car from Sam as a gift. Sam paid 48,000 for the car. He had used it for business purposes and had deducted 10,000 for depreciation up to the time he gave the car to Nicky. The fair market value of the car is 33,000. a. Assuming that Nicky uses the car for business purposes, what is her basis for depreciation? b. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 32,500. What is her recognized gain or loss? c. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 20,000. What is her recognized gain or loss?
John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $850 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations? $200 $875 $2,500 $3,200 $0
Hank owns a gym called Ultimate Fitness. During the past year, Hank sold his facility to purchase a larger building with a parking lot. He received sales proceeds of $125,000 form the buyer. He paid a sales commission to his broker of $6,500. The building had an original cost of $105,00 and had accumulated depreciation for tax purposes of $15,825. What is Hank's realized gain or loss on the sale?
What is hanks realized gain or loss on the sale ?
General Account:- Hank owns a gym called Ultimate Fitness. During the past year, Hank sold his facility to purchase a larger building with a parking lot. He received sales proceeds of $125,000 form the buyer. He paid a sales commission to his broker of $6,500. The building had an original cost of $105,00 and had accumulated depreciation for tax purposes of $15,825. What is Hank's realized gain or loss on the sale?
What is hanks realized gain or loss on the sale ??? Please help me this question
What is the realized gain or loss on the slae on these financial accounting question?
Owe ramsin is upgrading her factory equipment this year and sells her old equipment. The old equipment had an original basis of $2,000 but has since been fully depreciated. Ramsin sells the property for $1,500. What are the tax consequences for Ramsin on the sales? 1. $1,500 ordinary income 2. No effect 3. $500 ordinary loss 4. $1,500 capital gain
Joaquin purchased a $235,000 crane for a construction business. The crane was sold for $175,000 after taking $115,000 of depreciation. Assume Joaquin is in the 35% tax rate bracket. Required: a. On what form would the gain or loss originally be reported? b. What is the amount of gain or loss on the sale? c. What amount of the gain or loss is subject to ordinary tax rates? Complete this question by entering your answers in the tabs below. Required a Required b Required c PS What is the amount of gain or loss on the sale?
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Question: Surendra's personal residence originally cost $340,000 (ignoring the value of the land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. As to the rental property, calculate Surendra's basis for: Loss. Depreciation. Gain. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 and then purchased another house for $320,000 to hold as rental property? Explain. Summarize your answer to this problem in an e-mail to your instructor

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