Question

Orange Corporation had income from operations of $29,000. What is the corporation’s taxable income including the...

Orange Corporation had income from operations of $29,000. What is the corporation’s taxable income including the following property transactions: Gain on investment stock = $8,000; loss on machinery

held three years = $6,000; $4,000 loss on equipment held 10

months; $4,000 gain on land used for six years for storage of trucks.

What is Orange’s Corporation's taxable income?

a. $33,000 b. $27,000 c. $31,000 d. $25,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Orange's Corporation's taxable income:

Income from Operation-$29,000

Gain on investment stock-$8000

Short term loss on Equipment-($4000)

Total ordinary income - $33000

Capital gain on sale of land-$4000

Capital loss on sale of Machinery-($6000)

Net long term capital loss carried forward to next period-($2000)

Taxable income - $33,000

Long term capital loss can be set off against capital gains only, thus the remaining loss of $2000 will be carried forward to subsequent period and will not be setoff against ordinary taxable income.

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
1.) §For 2018, Zing Company had the following gains and losses from §1231 property: •1231 Casualty...
1.) §For 2018, Zing Company had the following gains and losses from §1231 property: •1231 Casualty gains:          $23,000 •1231 Casualty losses:      (5,000) •§1231 gains:                       35,000 •§1231 losses:                     (60,000) •What is the effect of the §1231 transactions on Zing’s taxable income for 2018? 2.) Assume that Zing Company had the following §1231 gains and losses in 2019. What is the tax treatment of the §1231 gains and losses for 2019? •Casualty loss $(8,000) •§1231 gains 33,000 •§1231 losses...
For 2018, Sleevo Shirt Corporation had taxable income before the charitable contributions deduction of $10,000 and...
For 2018, Sleevo Shirt Corporation had taxable income before the charitable contributions deduction of $10,000 and charitable contributions of $15,000. Sleevo Shirt Corporation may deduct what amount of charitable contributions? a.$0 b.$10,000 c.$1,000 d.$15,000 Kathy and Irene form Wintercrest Corporation. Kathy contributed cash of $10,000 in exchange for 100 shares of Wintercrest stock. Irene contributed property with a fair market value of $14,000, adjusted basis of $7,000, and subject to a recourse debt of $4,000 which the corporation assumed, for...
An individual taxpayer has the following gains and losses from property transactions. What is the effect...
An individual taxpayer has the following gains and losses from property transactions. What is the effect on the taxpayer’s taxable income? $ 4,000 Long-term capital gain 7,000 Long-term capital loss 10,000 Section 1231 gain 6,000 Section 1231 loss 3,000 Short-term capital gain 6,000 Short-term capital loss
Maria, who is single, had the following items for 2015: Salary $80,000 Loss on sale of...
Maria, who is single, had the following items for 2015: Salary $80,000 Loss on sale of § 1244 small business stock acquired 3 years ago (60,000) Stock acquired 2 years ago became worthless during the year (5,000) Long-term capital gain 25,000 Nonbusiness bad debt (15,000) Casualty loss on property held 6 months (6,000) Casualty gain on property held 4 years 4,000 Determine Maria’s adjusted gross income for 2015.
Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company...
Beaver Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Eugenia VanDam. The land’s fair market value was $20,000, and its tax and E&P basis to Beaver was $50,000. Eugenia assumed a mortgage on the land of $25,000. Beaver Corporation had accumulated E&P of $1,500,000. (Leave no answer blank. Enter zero if applicable.) a) Compute Beaver's taxable income and federal income tax Taxable Income= ?...
Limon Corporation incurs the following transactions.? Net income from operations                             &
Limon Corporation incurs the following transactions.? Net income from operations                                           $110,000 Interest income from saving account $5,000 Long-term capital gain from sale of securities $9,000 Short-term capital loss from sale of securities    $4,000 Limon maintains a valid S election and does not distribute any dividends to its shareholder, Patricia. As a result, Patricia must recognize how much ordinary income, long-term capital gain(loss), and or short-term capital gain(loss)?
Volunteer Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp
Volunteer Corporation reported taxable income of $500,000 from operations this year. During the year, the company made a distribution of land to its sole shareholder, Rocky Topp. The land’s fair market value was $75,000 and its tax and E&P basis to Volunteer was $25,000. Rocky assumed a mortgage attached to the land of $15,000. Any gain from the distribution will be taxed at 21 percent. The company had accumulated E&P of $750,000 at the beginning of the year.c. Compute Volunteer’s...
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000....
A) In 2017, Larkspur Corporation had pretax financial income of $164,000 and taxable income of $131,000. The difference is due to the use of different depreciation methods for tax and accounting purposes. The effective tax rate is 40%. Compute the amount to be reported as income taxes payable at December 31, 2017. B) Buffalo Corporation began operations in 2017 and reported pretax financial income of $212,000 for the year. Buffalo’s tax depreciation exceeded its book depreciation by $33,000. Buffalo’s tax...
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...
Pronghorn Corporation, a clothing retailer, had income from operations (before tax) of $405,000, and recorded the...
Pronghorn Corporation, a clothing retailer, had income from operations (before tax) of $405,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal of equipment 29,160 Unrealized (loss)/gain on FV-NI investments (58,320 ) (Loss)/gain on disposal of building (73,440 ) Gain on disposal of FV-NI investments 35,640 Pronghorn also had the following account balances as at January 1, 2020: Retained earnings $442,800 Accumulated other comprehensive income (this was due to a revaluation surplus on...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT