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.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter14: Property Transact Ions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 74P

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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 ✓
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 Machine $77,000 02/28/19 $28,000 $51,000 12/04/20 #3 Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter "0". Total Amount of Character of Amount of § 1245 Balance of Asset Gain or Loss Gain or Loss Recapture Gain or Loss Machine #1 $ $ Machine #2 $ 2$ Machine #3 Goyo has of due to § 1245 recapture and $ of § 1231 Assuming Goyo 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.
Problem 8-37 (LO. 6, 7) Amber Industries (a sole proprietorship) sold three 5 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Asset Rack Cost Acquired Depreciation $100,000 10/10/19 Sold For Sold On $100,000 $145,000 10/10/23 •Forklift Bin 35,000 87,000 10/16/20 23,000 3,000 10/10/23 03/12/22 31,000 60,000 10/10/23 a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter "0". Asset Character of Gain or Loss Total Amount of Gain or Loss Amount of $1245 Recapture Balance of Gain or Loss Rack Forklift Bin Amber has due to 5 1245 recapture. Additionally, she has s of net 5 1231 b. Assuming that Amber has $5,000 nonrecaptured nåt § 1231 losses from the five prior years, analyze these transactions, and determine the amount (if any) that will be treated as a long-term capital gain.
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Assume that ACW Corporation has 2023 taxable income of $1,820,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Placed in Service 12-September 10-February Delivery truck 21-August Qualified real property (MACRS, 15 year, 02-April 150% DB) Total Asset Machinery Computer equipment a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 Basis $ 502,000 102,000 125,000 1,412,000 $ 2,141,000 $ $ 1,160,000 1,304,408 X
Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired 5/12/2018 3/23/2019 Original Basis $ 87,500 104,500 46,000 303,800 9/17/2020 10/11/2021 10/11/2022 106,000 Asset Furniture (7-year) Machinery (7-year) Delivery truck (5-year). Date Sold 7/15/2022 3/15/2022 3/13/2022 8/11/2022 12/15/2022 Depreciation deduction Convention HY MQ HY MQ Machinery (7-year); Computer (5-year) *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2022 depreciation deduction (ignore 5179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2. and Exhibit 10-6.) Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.
Problem 10-50 (LO 10-2) (Static) Way Corporation disposed of the following tangible personal property assets in the current year. Date Acquired 5/12/18 Original Basis $ 55,000 3/23/19 72,000 20,000 9/17/20 10/11/21 270,000 10/11/22 80,000 Depreciation deduction Asset Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2022 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount. Date Sold 7/15/22 3/15/22 3/13/22 8/11/22 12/15/22 $ 63,357 X Convention HY MQ HY MỌ HY