Question

Luly will report $800,000 of taxable income in 2019. Included in the taxable income is one...

Luly will report $800,000 of taxable income in 2019. Included in the taxable income is one sale of an investment asset. Luly sold a building she had owned for three years, resulting in a $100,000 unrecaptured Sec. 1250 gain. Her tax on the gain (without consideration of the additional Medicare tax) will be

Select one:

a. $28,000.

b. $15,000.

c. $25,000.

d. $20,000.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Sargon is single and has taxable income of $175,000 without considering the sale of a capital...
Sargon is single and has taxable income of $175,000 without considering the sale of a capital asset (land held for investment) in October of 2017 for $30,000. That asset was purchased five years earlier and has a tax basis of $10,000. The tax liability applicable to only the capital gain (without consideration of the additional Medicare tax) is A) $1,000. B) $3,000. C) $5,600. D) $7,000.
Gorm Inc., a cash-method C corporation, had taxable income of $250,000 for its initial taxable year...
Gorm Inc., a cash-method C corporation, had taxable income of $250,000 for its initial taxable year (year 1). A review of company records revealed the following information: Gorm’s estimated federal income tax payments made during the year totaled $40,000. The current-year tax depreciation expense on furniture and fixtures, the only asset owned by Gorm, was $12,000. If Gorm had used the alternative depreciation system (straight-line method), depreciation expense deducted would have been $5,000. Gorm had tax-exempt interest income of $21,000...
Gator Inc. reported taxable income of $1,500,000 this year and paid federal income taxes of $315,000....
Gator Inc. reported taxable income of $1,500,000 this year and paid federal income taxes of $315,000. Included in the company’s computation of taxable income is gain from the sale of a depreciable asset of $98,500. The income tax basis of the asset was $197,000. The E&P basis of the asset using the alternative depreciation system was $339,900. Compute the company’s current E&P. (Negative amount should be indicated with a minus sign.) Taxable income Federal income taxes E&P loss from sale...
ACCOUNTING TAX 1. Donor Corporation had the following income and deductions for last year: Sales $5,000...
ACCOUNTING TAX 1. Donor Corporation had the following income and deductions for last year: Sales $5,000 Cost of sales 3,500,000 Other operating expenses 800,000 Dividends(from 5% owned domestic corporations) 100,000 Donor Corporation also made contributions (not included above) to qualifying charitable organizations of $175,000. Determine Donor Coporation's taxable income for the year. 2. Barbara sells an asset to her wholly-owned corporation. The asset has a basis of $32,000 and a fair market value at the time of the sale of...
Brandon, an individual, began business four years ago as a sole proprietorship and has sold §1231...
Brandon, an individual, began business four years ago as a sole proprietorship and has sold §1231 assets resulting in $6,000 of unrecaptured losses within the last 5 years. In the current year, Brandon sold the following business assets. All of these assets were placed in service more than one year ago. Asset Original Cost Accumulated Depreciation Gain/Loss Machinery $ 30,000 $ 7,000 $ 10,000 Land $ 40,000 $ 0 ($5,000) Building $ 90,000 $ 30,000 $20,000 Hint: This is not...
Explorers Auto Parts, Inc. reported pretax accounting (GAAP) income of $200,000 in 2019. Included in this...
Explorers Auto Parts, Inc. reported pretax accounting (GAAP) income of $200,000 in 2019. Included in this amount is $100,000 of warranty expense. IRS rules say that warranty expenses cannot be used to reduce taxable income until they are paid. $0 of warranty expense was paid in 2019. The 2019 tax rate was 25%. Required: [1] Prepare the journal entry necessary to record Explorers' 2019 taxes. [2] Due to COVID-19, there is uncertainty regarding whether Explorers Auto will be able to...
Background Explorers Auto Parts, Inc. reported pretax accounting (GAAP) income of $200,000 in 2019. Included in...
Background Explorers Auto Parts, Inc. reported pretax accounting (GAAP) income of $200,000 in 2019. Included in this amount is $100,000 of warranty expense. IRS rules say that warranty expenses cannot be used to reduce taxable income until they are paid. $0 of warranty expense was paid in 2019. The 2019 tax rate was 25%. Required: [1] Prepare the journal entry necessary to record Explorers' 2019 taxes. [2] Due to COVID-19, there is uncertainty regarding whether Explorers Auto will be able...
John Burtt sold his small office building for $290,000 in 2019. Burtt acquired the building in...
John Burtt sold his small office building for $290,000 in 2019. Burtt acquired the building in January 1986 for $270,000 and made improvements costing $15,000 at that time. John used accelerated deprecation under ACRS, and the asset was fully depreciated. For tax purposes Burtt should treat the gain as Answer choices 1. $241,550 Sec. 1231 gain. 2. $5,000 Sec. 1231 gain; $225,000 ordinary income. 3. $5,000 Sec. 1231 gain; $285,000 ordinary income. 4. None $16,550 Sec. 1231 gain; $225,000 ordinary...
Summer Co. is preparing the reconciliation between accounting income and taxable income for 2019.   Actual warranty...
Summer Co. is preparing the reconciliation between accounting income and taxable income for 2019.   Actual warranty repairs made in 2019 and allowed to be deducted for tax purposes amounted to $40,000. Warranty expense recorded in 2019 was $30,000. For years before 2019, warranty expense recorded was $60,000 and total repairs made under warranty amounted to $10,000. CCA allowed for tax purposes in 2019 was $65,000; depreciation expense recorded in 2019 was $85,000. For years before 2019, depreciation expense exceeded CCA...
1.A sole proprietorship purchased a machine in June of 2019 that cost $700,000. The machine is...
1.A sole proprietorship purchased a machine in June of 2019 that cost $700,000. The machine is a 7 year MACRS asset. Assume the taxpayer wants to maximize current year depreciation and thus wants to utilize 100% bonus depreciation where applicable. What is the total amount of depreciation the taxpayer can take for the machine in 2019? 2.A taxpayer sold a machine that she had owned and used in her business for several years. The gain on the sale was $20,000,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT