Question

# Ms. D sold a business that she had operated as a sole proprietorship for 18 years....

Ms. D sold a business that she had operated as a sole proprietorship for 18 years. On date of sale, the business balance sheet showed the following assets:

Accounts receivable\$50,750

Inventory 153,600

Furniture and equipment:

Cost 60,000

Accumulated depreciation (48,000)

Leasehold improvements:

Cost 24,500

Accumulated amortization (4,900)

The purchaser paid a lump-sum price of \$303,750 cash for the business. The sales contract stipulates that the FMV of the business inventory is \$170,000, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms. D’s marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.

Net Cash Flow ---------------

Purchaser paid a lump-sum price of= \$303,750

7ssuming that Ms. D’s marginal tax rate on ordinary ,income is 35 percent(13200x35%)=4620

Her rate on capital gain is 15 percent(51400x15%)=7,710

=303,750-4620-7,710

=\$291,420

 Amount realized Amount adjusted Normal-gain Captial-gain Inventory 170,000 156,800 13200 other 82.350 82.350 0 Goodwill 51400 51,400 Total 303,750 239,150 13,200 51,400

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....
Please comment if any querry i will resolve as soon as possible

#### Earn Coins

Coins can be redeemed for fabulous gifts.

##### Need Online Homework Help?

Most questions answered within 1 hours.

##### Active Questions
• Problem ( Foraging in the Forest) Consider these rules when determining whether a mushroom is poisonous:...
• Assume that human body temperatures are normally distributed with a mean of 98.23 degrees Upper F...
• How about Using JES to learn Python? Do you think that using another IDE, such as...
• Using Python (pandas as pd) I am trying to use the split, apply, combine method but...
• Given 2 regular expressions below (a) ([0−9])∗911([0−9])∗+([0−9])∗666([0−9])∗+([0−9])∗8888([0− 9])∗ (911,at least 4 consecutive 8, or 666) (b)...
• What mass of sucrose (C12H22O11) should be combined with 505g of water to make a solution...