Problem 14-72 (b) (LO. 7, 8, 9)Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2020. Data on theseproperty dispositions are as follows:SoldAssetCostAcquired DepreciationSold OnForMachine$85,000 08/31/16$32,000 $60,000 12/04/20#1Machine$30,000 11/17/17$12,000 $15,000 12/04/20#2Machine$77,000 02/28/19$28,000 $51,000 12/04/20#3Determine the amount and the character of the recognized gain or loss from the dispositionof each asset.If an amount is zero, enter "0".TotalAmount ofCharacter ofAmount of§ 1245Balance ofAssetGain or Loss Gain or LossRecaptureGain or LossMachine #1$$Machine #2$2$Machine #3Goyo hasofdue to § 1245 recapture and $of §1231Assuming Goyo has no nonrecaptured net § 1231 losses from prior years, analyze thesetransactions and determine the amount (if any) that will be treated as a long-term capitalgain.

Problem 14-72 (b) (LO. 7, 8, 9) Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2020. Data on these property dispositions are as follows: Sold Asset Cost Acquired Depreciation Sold On For Machine $85,000 08/31/16 $32,000 $60,000 12/04/20 #1 Machine $30,000 11/17/17 $12,000 $15,000 12/04/20 #2

Problem 14-72 (b) (LO. 7, 8, 9) Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2020. Data on these property dispositions are as follows: Sold Asset Cost Acquired Depreciation Sold On For Machine $85,000 08/31/16 $32,000 $60,000 12/04/20 #1 Machine $30,000 11/17/17 $12,000 $15,000 12/04/20 #2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 14-72 (LO. 7, 8, 9) Siena Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Cost Acquired Depreciation Sold For Sold On Rack $100,000 10/10/19 $62,000 $86,000 10/10/23 Forklift 35,000 10/16/20 23,000 4,000 10/10/23 Bin 87,000 03/12/22 34,000 60,000 10/10/23 Asset If an amount is zero, enter "0". a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has loss Feedback ►Check My Work Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X due to § 1245 recapture and X 0 ✓ 7,000 Balance of Gain or Loss 0 0 X of § 1231 X b. Assuming that Siena has no nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 0 ✓
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! Required information [The following information applies to the questions displayed below.] DLW Corporation acquired and placed in service the following assets during the year: Date Acquired 2/24 4/17 Cost Basis $ 12,000 $ 26,400 $ 264,000 11/5 Asset Computer equipment Furniture Commercial building Assuming DLW does not elect §179 expensing and elects not to use bonus depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is DLW's year 1 cost recovery for each asset? Asset Computer equipment Furniture Commercial building Total Year 1 Cost Recovery $ $ $ $ 2,400 3,773 845 7,018
X Transactions for CCA Class 8 assets. Date Item Activity Amount March 11, 2002 Machine 1 Purchase $50,000 April 24, 2002 Machine 2 Purchase $150,000 November 3, 2005 Machine 3 Purchase $230,000 November 22, 2005 Machine 1 Sale $10,000 May 20, 2009 Machine 4 Purchase $50,000 August 3, 2014 Machine 5 Purchase $345,000 September 12, 2015 Machine 3 Sale $50,000 Churchill Metal Products opened for business in 2002. Its transactions for CCA Class 8 assets over the years are shown in the accompanying table. What CCA amount did Churchill Metal Products claim for the 20 percent UCC account in 2016? Click on the icon to view the transactions for CCA Class 8 assets. Churchill Metal Products claimed a CCA of $ in 2016. (Do not round until the final answer. Then round to the nearest dollar as needed.)
(0) Problem 10-54 (LO 10-2, LO 10-3) (Algo) Skip to question Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2, and Table 5.) Asset Date Placed in Service Original Basis Machinery October 25 $ 102,000 Computer equipment February 3 42,000 Delivery truck* March 17 55,000 Furniture April 22 182,000 Total $ 381,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $620,000. Problem 10-54 Part b (Algo) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take 179 expense)?
Required information Problem 10-54 (LO 10-2, LO 10-3) (Algo) Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck* Furniture Total Date Placed in Service October 25 February 3 MACRS depreciation March 17 April 22 Original Basis $ 96,000 36,000 49,000 176,000 $ 357,000 *The delivery truck is not a luxury automobile. In addition to these assets, Convers installed qualified real property (MACRS, 15 year, 150% DB) on May 12 at a cost of $560,000. Problem 10-54 Part b (Algo) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of bonus depreciation (but does not take §179 expense)?
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P9-1A Acquisition Cost of Long-Lived Assets The following items represent expenditures (or receipts) related to the construction of a new home office for Lowery Company. Cost of land site, which included an old apartment building appraised at $75,000 $173,000 Legal Fees, including fee for the title search 2, 100 Payment of apartment building mortgage and related interest due at time of sale 9,300 Payment for delinquent property taxes assumed by the purchaser 6,000 Cost of razing the apartment building 17,000 Proceeds from sale of salvaged materials (3,800) Grading to establish proper drainage flow on land site 2, 100 Architect’s fees on new building…
Questio n 12 On July 1, 2020 , Brandon SE purchased Mills Company by paying $140,000 cash. On July 1, 2020, the fair value of the net assets of Mills Company was as follows. Buildings (net) $ 30,000 Patent 8,000 Land 25,000 Accounts receivable 12,000 Cash 50,000 Accounts payable 10,000 What is the amount of goodwill to be reported at Brandon's statement of financial position on 31/12/2019? 25000 15000 Zero 35000 37°C Haze e to search DELL