Saleh sold the following stock in 2021. ABC, Incorporated, is a § 1202 qualified small business (QSB). Asset Cost Acquired Sale Price Sale Date ABC, Incorporated, 190 shares $ 141,550 01/10/2020 $ 181,260 04/30/2021 DEF, Incorporated, 140 shares 27,300 11/15/2017 21,000 02/28/2021 GHI, Incorporated, 70 shares 26,740 03/31/2020 23,800 08/30/2021 Required: Complete the chart. After netting, what is the total gain or loss? If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed?

Q: The gain on sale of investment is

A: Santo is able to exercise significant influence on Nino and accordingly the investment would be…

Q: The investments of Harlon Enterprises included the following cost and fair value amounts ($ in…

A:

Q: Rossow purchased 1,900 shares of Reimer on July 12, 2021, for $72,200; Reimer reported $45,000 net…

A: Equity method of accounting investment is used when the ownership is more than 20% .Equity Method of…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: The accounting method of amortisation is used to distribute the cost of using a long-term asset…

Q: In 2022 Blue Company was involved in the following inter corporate stock investments;   11/12/22…

A: A journal entry is used to record the day-to-day transactions of an organization by debiting and…

Q: Stellar Co. acquired 25% of the 500,000 shares of outstanding common stock of Overload Inc. on…

A: Securities available for sale are those debt or equity securities investments made by the company…

Q: Mike Ltd purchased the outstanding voting shares of Sam Ltd at the beginning of 2009 for $387,000.…

A: Acquisition refers to the acquisition of common shares and voting rights in one company by another…

Q: On November 1, 2020, Aggie Supplies, Inc. purchased 2,000 shares of Reveille Couture, Inc. for…

A: Calculate unrealized gain or loss on investment as on December 31, 2020, as follows: The unrealized…

Q: Miller Corporation acquired 30% of ilie outstanding common stock of Crowell Corporation for $160,000…

A: Journal is the book of original entry in which all the transactions of the business are recorded…

Q: Assume that you own 110 shares of common stock of a company, that you have been receiving cash…

A: Since you have asked multiple question we can solve only first question please repost the question…

Q: Clayton Co. owned 30,000 ordinary shares of Dayton Corporation purchased in 2018 for P540,000. On…

A: Lets understand the basics. A property dividend is a type of dividend that replaces cash or stock…

Q: On January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained…

A: Amortization is the term of accounts which is defined as the technique of accounts, used to lower or…

Q: opening capital balance was $377,000 and Moe's opening capital balance was $282,750. The business…

A: Partnership accounts shows the capital of each partner at the end of the year after taking into…

Q: 2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company…

A: The amount of dividend revenue shown in M.T. Glass, Inc.'s 2029 income statement for these two…

Q: Following are separate financial statements of Michael Company and Aaron Company as of December 31,…

A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

Q: Cost $124,000 263.000 $387.000 1,000 shares of Stryker Corp., common 3,000 shares of Medtronic,…

A: Investment in other company is shown as asset in investor company financial statement. The method of…

Q: On January 1, 2020, Abbey acquires 90 percent of Benjamin's outstanding shares. Financial…

A: Taxation refers to the imposition of compulsory financial obligations by the government on…

Q: Mickey Inc. is considering purchasing the net assets of Minnie Corporation.  Mickey has been given…

A: Answer) Calculation of Value of Goodwill Goodwill = Amount paid to purchase the company – (Fair…

Q: On January 1, 2020, Sarasota Corporation purchased 20% of the common shares of Ivanhoe Company for…

A: Journal entry Journal entry refers to an entry that is made to record the financial transactions in…

Q: Prepare Journal Entry for the transactions above

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Santo, Inc. acquired 30% of Nino Corp's voting stock on January 1, 2019 for P360,000. During 2019…

A: In the given question we are provided with the data of Santo Inc. With the given information we are…

Q: Sonic Enterprises Inc. has decided to purchase 100% of the voting shares of Jackson Inc. for…

A: Goodwill is arises when amount of total net assets acquired is lower than total of liabilities taken…

Q: On January, 01, 2019, Y Corporation acquires 0.25 of X corporation voting common shares 150000…

A: When an investor company invests more than 20% but less than 50%, it used equity method for…

Q: Requirements: a) Journalize the 2021 transactions. b) Prepare the adjusting entries at December 31,…

A: Particulars Debit/Credit Amount($) Jan 2: FVTPL financial assets-equity, Anna Corporation Dr 60000…

Q: On December 31, 2022, Akron, Incorporated, purchased 5 percent of Zip Company's common shares on the…

A: Investment via Equity Method: This is a specific method of accounting where any investment made is…

Q: On January 1, 2019, Paul acquired 80% of Saul. Information regarding the income and equity structure…

A: Subsidiary calculation: Basic EPS = (72000-9600)/12000= $5.2 Consolidated calculation Basic EPS =…

Q: Required Information [The following information applies to the questions displayed below] On April…

A: The treasury stock decreases the total shareholders' equity. the sale of treasury stock increases…

Q: purchased 2,000 shares of Potter Wholesale for $35 per share. Based on the percentage of outstanding…

A: The realised gain or loss is the difference between the Fair Value of Stock and Sale Value of Stock…

Q: Buildings (18-year life) Equipment (5-year life) Franchises (8-year life) Book Value Fair Value $…

A: Amortization represents the reduction in the value of asset over a period of time. It is considered…

Q: M.T. Glass, Inc. purchased the following investments on January 1, 2028: 1. 21,000 shares…

A: Introduction:If an investor company makes an investment between 20 to 50% in the investee company…

Q: , 2022, Wayne Corporation acquired 55,000 common shares of Garth Company for $30 each. At the time,…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: January 1, 2020, Barber Corp. paid $1,160,000 to acquire Thompson Co. Thompson maintained separate…

A: A subsidiary, in the business world, is a corporation that belongs to another corporation, generally…

Q: Following is a list of investments owned by Ivanhoe Ltd., as of the company’s year-end, December 31,…

A: The fair value (FV) method for recording the investment-related transaction made the corporation…

Q: 1. Prepare the journal entry to record the purchase of Eoxcom shares 2. Prepare the journal entry to…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Equity method of Accounting: The equity technique is used to account for company investments. This…

Q: On January 5, 2020, Splish Brothers Company purchased the following stock securities:   282 shares…

A: In the context of the given question, we need to prepare the journal entries of transactions of the…

Q: 00 in 2017. 70 shares for $2,250 in 2018. 80 shares for $2,675 in 2019. They sold 160 shares of…

A: Answer :The basis used in the sale of share is FIFO basis. In FIFO method it is assumed that first…

Q: On July 1, 2019, an investor company owns 20% of the common stock of an Investee and can exercise…

A: It was given that after sale of 10% the remaining 10% investment has readily determinable fair…

Q: On March 31, 2021, Chow Brothers, Inc., bought 10% of KT Manufacturing’s capital stock for $50…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Securities 2,500 shares of Petra Corporation common shares 900 shares of Dugald Inc. preferred…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: On December 31, 2019, Akron, Inc., purchased 5 percent of Zip Company's common shares on the open…

A: Under the equity method, the investor initially records the investment at cost and subsequently…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.