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- Renata Corporation purchased equipment in 2019 for $180,000 and has taken $83,000 of regular MACRS depreciation. Renata Corporation sells the equipment in 2021 for $110,000. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $ of which $ is treated as ordinary income due toRenata Corporation purchased equipment in 2019 for $366,400 and has taken $164,880 of regular MACRS depreciation. Renata Corporation sells the equipment in 2021 for $219,840. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $fill in the blank 1 of which $fill in the blank 2 is treated as ordinary income due to section 1245 recapture. .Renata Corporation paid $366,400 for equipment in 2019 and took $164,880 in standard MACRS depreciation. In the year 2021, Renata Corporation sells the equipment for $219,840. What is Renata's gain or loss, and what is its nature? Due to section 1245 recapture, Renata Corporation has a gain of $fill in the blank 1, of which $fill in the blank 2 is treated as ordinary income.
- EB Corporation, a C corporation, purchases a warehouse on August 1, 2007, for $ 1 MILLION Straight-line depreciation is taken in the amount of $411, 750 before the property is sold on June 12, 2023, for $1.2 MIL. What is the amount and character of the gain recognized by EB on the sale of the realty?On November 1, 2018, Berry Corporation declared equipment as property dividend payable on February 15, 2019. The carrying amount of the equipment is P700,000. Data relating to the fair values of the equipment are as follows: Date Fair value November 1, 2018 600,000 December 31, 2018 800,000 February 15, 2019 760,000 **(assume that the cost to distribute are immaterial) How much is the gain on distribution of property dividends on February 15, 2019 when the dividends were finally distributed?Omar Company owns a property which was revalued to $ 625,000 on 31 December 2018 with a revaluation gain of $250,000 being recognized as other comprehensive income and recorded in the revaluation surplus. At 31, December 2020 the property had a carrying amount of $575,000 but the recoverable amount of the property was estimated at only $250,000. 1- What is the amount of impairment? 2- How the revaluation and the impairment should be treated in the financial statements?
- Copper Industries (a sole proprietorship) sold three § 1231 assets during 2019. Data on these property dispositions are as follows: a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset.b. Assuming that Copper has $6,000 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.ABC Compant purchased an investment property on July 1, 2016 for P4,200,000. The property had a useful life of 35 years and on December 31, 2021 had a fair valye of P3,000,000. On December 31, 2021, the property was sold for net proceeds of P3,100,000. The entity used the cost model to account for the investment property. How much is the gain (loss) to be recognized for the year ended December 31, 2021 regarding the disposal of the property. a. (540,000) b. 440,000 c. (100,000) d. (440,000)Aqua Corporation purchases nonresidential real property on May 8, 2019, for $1,650,000. Straight-line cost recovery is taken in the amount of $165,000 before the property is sold on November 27, 2022, for $2,475,000. Question Content Area a. Compute the amount of Aqua's recognized gain on the sale of the realty $_______________ Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income due to § 291). b. § 1231 gain: $_____________ § 1250 recapture (ordinary income due to § 291): $_______________________
- Aqua Corporation purchases nonresidential real property on May 8, 2017, for $1,000,000. Straight-line cost recovery is taken in the amount of $89,765 before the property is sold on November 27, 2020, for $1,500,000. Compute the amount of Aqua’s recognized gain on the sale of the realty. Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income).s15. Blue Company sold machinery for $45,000 on December 23, 2021. The machinery had been acquired on April 1, 2019, for $69,000 and its adjusted basis was $34,200. The § 1231 gain, § 1245 recapture gain, and § 1231 loss from this transaction are: a.$0 § 1231 gain, $0 § 1245 recapture gain, $14,800 § 1231 loss. b.$0 § 1231 gain, $10,800 § 1245 recapture gain, $34,200 § 1231 loss. c.$0 § 1231 gain, $34,200 § 1245 recapture gain, $0 § 1231 loss. d.$0 § 1231 gain, $10,800 § 1245 recapture gain, $0 § 1231 loss.
