Stephanie owns a machine (adjusted basis of $90,000; the fair market value of $125,000) that she uses in her business. She exchanges it for another machine (worth $100,000) and stock (worth $25,000). a. Stephanie's realized gain is $.............nd recognized gain is ............. b. The basis of the new machine is $.............. c. The basis in the stock she received is $............. The following items are components of a traditional balance sheet. Plant & equipment $42,500 Common stock Cash Inventory Bad debt reserve $15,000 $6,000 $23,900 $6,000 Additional paid-in capital $6,000 Accumulated depreciation $26,500 Accounts Receivable $22,000 How much are the total assets of the firm? Genetic Insights Co. purchases an asset for $15,531. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,261. Calculate the book value of an asset.
Stephanie owns a machine (adjusted basis of $90,000; the fair market value of $125,000) that she uses in her business. She exchanges it for another machine (worth $100,000) and stock (worth $25,000). a. Stephanie's realized gain is $.............nd recognized gain is ............. b. The basis of the new machine is $.............. c. The basis in the stock she received is $............. The following items are components of a traditional balance sheet. Plant & equipment $42,500 Common stock Cash Inventory Bad debt reserve $15,000 $6,000 $23,900 $6,000 Additional paid-in capital $6,000 Accumulated depreciation $26,500 Accounts Receivable $22,000 How much are the total assets of the firm? Genetic Insights Co. purchases an asset for $15,531. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,261. Calculate the book value of an asset.
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
Problem 31P
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Transcribed Image Text:Stephanie owns a machine (adjusted basis of $90,000; the fair market value
of $125,000) that she uses in her business.
She exchanges it for another machine (worth $100,000) and stock (worth
$25,000).
a. Stephanie's realized gain is $.............nd recognized gain is .............
b. The basis of the new machine is $..............
c. The basis in the stock she received is $.............
The following items are components of a traditional balance sheet.
Plant & equipment
$42,500
Common stock
Cash
Inventory
Bad debt reserve
$15,000
$6,000
$23,900
$6,000
Additional paid-in capital $6,000
Accumulated depreciation $26,500
Accounts Receivable
$22,000
How much are the total assets of the firm?
Genetic Insights Co. purchases an asset for $15,531. This
asset qualifies as a seven-year recovery asset under
MACRS. The seven-year fixed depreciation percentages for
years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%,
12.49%, 8.93%, and 8.93%, respectively. Genetic Insights
has a tax rate of 30%. The asset is sold at the end of six
years for $3,261.
Calculate the book value of an asset.
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