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years ago for $100,000 and each piece of equipment had $52,000 of depreciation deducted for tax purposes. What is the amount and character of the gain or loss for each of the three assets, given the sales prices below?

years ago for $100,000 and each piece of equipment had $52,000 of depreciation deducted for tax purposes. What is the amount and character of the gain or loss for each of the three assets, given the sales prices below?

FINANCIAL ACCOUNTING
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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Kk.317.

 

Everett Corporation sold three pieces of equipment used in its business this year. Each piece had been purchased two years ago for $100,000 and each piece of equipment had $52,000 of depreciation deducted for tax purposes. What is the amount and character of the gain or loss for each of the three assets, given the sales prices below? Asset 1 Sales Price $ 28,000. Gain or Loss Amount: Character: Asset 2 Sales Price Gain or Loss Amount: Character: Asset 3 Sales Price Gain or Loss Amount: Character: LeRoy has the following capital gains and losses for the current year: Short-term capital gain $10,000 Collectible loss Long-term capital gain $ 88,000. $108,000. (3,000) 5,000 If LeRoy is single and in the 22% tax bracket, what is the additional tax on his capital gains?
Transcribed Image Text:Everett Corporation sold three pieces of equipment used in its business this year. Each piece had been purchased two years ago for $100,000 and each piece of equipment had $52,000 of depreciation deducted for tax purposes. What is the amount and character of the gain or loss for each of the three assets, given the sales prices below? Asset 1 Sales Price $ 28,000. Gain or Loss Amount: Character: Asset 2 Sales Price Gain or Loss Amount: Character: Asset 3 Sales Price Gain or Loss Amount: Character: LeRoy has the following capital gains and losses for the current year: Short-term capital gain $10,000 Collectible loss Long-term capital gain $ 88,000. $108,000. (3,000) 5,000 If LeRoy is single and in the 22% tax bracket, what is the additional tax on his capital gains?
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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