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...
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.
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...
Determine taxable income in each of the following instances. Assume that the corporation is a C...
Determine taxable income in each of the following instances. Assume that the corporation is a C corporation and that book income is before any income tax expense. Book income of $61,000 including capital gains of $6,000, a charitable contribution of $1,600, and meals and entertainment expenses of $8,500. Book income of $103,000 including capital losses of $7,000, a charitable contribution of $17,500, and meals and entertainment expenses of $2,000. Book income of $81,500 including municipal bond interest of $1,500, a...
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...
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...
In 2020, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering...
In 2020, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) On May 12, 2020, they sold a painting (art) for $110,000 that was inherited from Grandma on July 23, 2018. The fair market value on the date of Grandma’s death was $90,000 and Grandma’s adjusted basis of the painting was $25,000. They applied a long-term capital loss carryover from...
In 2019, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering...
In 2019, Tom and Amanda Jackson (married filing jointly) have $200,000 of taxable income before considering the following events: (Use the dividends and capital gains tax rates and tax rate schedules.) On May 12, 2019, they sold a painting (art) for $110,000 that was inherited from Grandma on July 23, 2017. The fair market value on the date of Grandma’s death was $90,000 and Grandma’s adjusted basis of the painting was $25,000. They applied a long-term capital loss carryover from...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition,...
Trail Corporation has gross profits on sales of $140,000 and deductible expenses of $90,000. In addition, Trail has a net capital loss of $30,000. Trail's taxable income is $50,000 $20,000 $140,000 $60,000 Burt and Tiffany form Owl Corporation. Burt transfers property (basis of $20,000 and fair market value of $130,000), while Tiffany agrees to serve as Owl’s manager for one year. Each receives 100 shares of Owl Corporation stock. The value of Tiffany’s services for one year is $130,000. Which...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT