### Required Information[The following information applies to the questions displayed below.]Georgio owns a 10 percent profits and capital interest in Rain Tree LLC. For the current year, Rain Tree had the following revenues, expenses, gains, and losses:- **Sales revenue:** $92,000- **Gain on sale of land (§1231):** $19,500- **Cost of goods sold:** ($48,000)- **Depreciation—MACRS:** ($6,650)- **§179 deduction:** ($17,100)- **Employee wages:** ($13,900)- **Nondeductible fines and penalties:** ($4,500)- **Municipal bond interest:** $7,000- **Short-term capital gains:** $5,250- **Guaranteed payment to Sandra:** ($5,700)*Assume the §179 property placed in service limitation does not apply.*### a. How much ordinary business income (loss) is allocated to Georgio for the year?#### Table| Description | Total Amount | Allocated to Georgio || ------------------------------ | ------------ | -------------------- || Sales revenue | | || Gain on sale of land (§1231) | | || Cost of goods sold | | || Depreciation—MACRS | | || §179 deduction | | || Employee wages | | || Nondeductible fines and penalties | | || Municipal bond interest | | || Short-term capital gains | | || Guaranteed payment to Sandra | | || **Ordinary Business Income** | | |

Solution:- calculation of ordinary business income (loss) is allocated to Georgio for the year as…

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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 [The following information applies to the questions displayed below.] During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Capital Asset L stock M stock. N stock 0 stock Antiques Rental home Market Value $ 53,800 31,800 33,800 29,800 10,800 303,800* Tax Basis $ 42,900 42,800 23,900 36,800 Gross tax liability 5,900 91,900 Holding Period > 1 year > 1 year 1 year > 1 year *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax. a. Given that Ron and Anne have taxable income of only $18,100 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return?
Required information [The following information applies to the questions displayed below.] During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Capital Asset L stock N stock N stock O stock Antiques Rental home Market Value $ 50, 800 28,800 Tax Basis Holding Period $ 41,400 > 1 year 39,800 22, 400 > 1 year 1 year 90, 400 > 1 year 30, 800 *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax. b. Given that Ron and Anne have taxable income of $400,800 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2023 assuming they file a joint return? Gross tax liability
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Required information Problem 20-76 (LO 20-6) (Algo) [The following information applies to the questions displayed below.] Farell is a member of Sierra Vista LLC. Although Sierra Vista is involved in a number of different business ventures, it is not currently involved in real estate either as an investor or as a developer. On January 1, year 1, Farell has a $106,000 tax basis in his LLC interest that includes his $90,000 share of Sierra Vista's general liabilities. By the end of the year, Farell's share of Sierra Vista's general liabilities have increased to $106,000. Because of the time he spends in other endeavors, Farell does not materially participate in Sierra Vista. His share of the Sierra Vista losses for year 1 is $141,000. As a partner in the Riverwoods Partnership, he also has year 1, Schedule K-1 passive income of $14,000. Farell is single and has no other sources of business income or loss. (Leave no answer blank. Enter zero if applicable.) Problem 20-76 Part d (Algo) d.…
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Required information [The following information applies to the questions displayed below.] During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.) Capital Asset Market Value Tax Basis Holding Period L stock $ 50,000 $ 41,000 > 1 year M stock 28,000 39,000 > 1 year N stock 30,000 22,000 1 year 300,000* 90,000 > 1 year *$30,000 of the gain is 25 percent gain (from accumulated depreciation on the property). Ignore the Net Investment Income Tax. a. Given that Ron and Anne have taxable income of only $20,000 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2022 assuming they file a joint return? Answer is complete but not entirely correct. Gross tax liability $ 0
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