Required information [The following information applies to the questions displayed below.] Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers blank. Enter zero if applicable. Required: e1. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000? *2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)? Complete this question by entering your answers in the tabs below. Required e1 Required e2 Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000? Description Total Gain or (Loss) Recognized Ordinary Income - $291 depreciation recapture §1231 gain or loss Amount $ 50,000
Required information [The following information applies to the questions displayed below.] Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset. Hart has a marginal tax rate of 32 percent. Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other than those described in the problem): Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers blank. Enter zero if applicable. Required: e1. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000? *2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)? Complete this question by entering your answers in the tabs below. Required e1 Required e2 Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a nonresidential building sold for $450,000? Description Total Gain or (Loss) Recognized Ordinary Income - $291 depreciation recapture §1231 gain or loss Amount $ 50,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 4BD
Related questions
Question
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I need help with e1. I have completed e2 and the answer is $10,500, but I am currently struggling to find the numbers for e1 at the moment.
![Required information
[The following information applies to the questions displayed below.]
Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset.
Hart has a marginal tax rate of 32 percent.
Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other
than those described in the problem):
Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers
blank. Enter zero if applicable.
Required:
e1. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a
nonresidential building sold for $450,000?
*2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)?
Complete this question by entering your answers in the tabs below.
Required e1 Required e2
Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a
nonresidential building sold for $450,000?
Description
Total Gain or (Loss) Recognized
Ordinary Income - $291 depreciation recapture
§1231 gain or loss
Amount
$
50,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5328c12f-e34a-4a1d-b440-4bff5d546c4c%2F78afcd7f-7af2-4adc-940f-eb2fc0b9097d%2F2qax4kc_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Hart, an individual, bought an asset for $500,000 and has claimed $100,000 of depreciation deductions against the asset.
Hart has a marginal tax rate of 32 percent.
Answer the questions presented in the following alternative scenarios (assume Hart had no property transactions other
than those described in the problem):
Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answers
blank. Enter zero if applicable.
Required:
e1. Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a
nonresidential building sold for $450,000?
*2. What effect does the sale have on Hart's tax liability for the year (assume a 21 percent tax rate)?
Complete this question by entering your answers in the tabs below.
Required e1 Required e2
Now assume that Hart is a C corporation. What are the amount and character of its recognized gain or loss if the asset is a
nonresidential building sold for $450,000?
Description
Total Gain or (Loss) Recognized
Ordinary Income - $291 depreciation recapture
§1231 gain or loss
Amount
$
50,000
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