Problem 14-73 (Algorithmic) (LO. 8, 9) Copper Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Asset Cost Acquired Depreciation Bin Rack $119,600 10/10/20 $77,740 $59,800 10/10/23 Forklift 47,840 10/16/20 23,920 17,940 10/10/23 107,640 03/12/22 35,880 59,800 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. Rack Forklift Bin Copper has $ 1231 Character of Gain or Loss Sold For Total Amount of Gain or Loss § 1231 gain § 1231 loss Ordinary income of Sold On Amount of § 1245 Recapture Balance of Gain or Loss due to § 1245 recapture and $ of § b. Assuming that Copper has $11,960 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.

Problem 14-73 (Algorithmic) (LO. 8, 9) Copper Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Asset Cost Acquired Depreciation Bin Rack $119,600 10/10/20 $77,740 $59,800 10/10/23 Forklift 47,840 10/16/20 23,920 17,940 10/10/23 107,640 03/12/22 35,880 59,800 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. Rack Forklift Bin Copper has $ 1231 Character of Gain or Loss Sold For Total Amount of Gain or Loss § 1231 gain § 1231 loss Ordinary income of Sold On Amount of § 1245 Recapture Balance of Gain or Loss due to § 1245 recapture and $ of § b. Assuming that Copper has $11,960 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.

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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Required information Problem 02-47 (LO 02-2) (Algo) [The following information applies to the questions displayed below.] DLW Corporation acquired and placed in service the following assets during the year: Date Acquired 3/5 Cost Basis $ 18,500 $ 25,900 $ 291,000 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. Problem 02-47 Part b (Algo) . What is DLW's year 3 cost recovery for each asset if DLW sells these assets on 3/26 of year 3? Asset 4/22 8/19 X Answer is complete but not entirely correct. Year 3 Cost Recovery Computer equipment Furniture Commercial building Total $ $ $ $ 1,776 2,265 13,070 X 17,111
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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)?
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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…