Question

Kristen owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is...

Kristen owns a concrete mixing business (sole proprietorship), which nets $200,000 in Year 1 and is expected to grow by $10000/year in each of the next 5 years. Assume her exemptions and deductions are $10,000/year for all 6 years. Also, assume that Kristen has just purchased a 5-year class concrete mixer for $100,000. The tax and MACRS depreciation tables attached.


Kristen Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

Income $200,000 $210,000 $220,000 $230,000 $240,000 $250,000

Deductions

Depreciation

Taxable Income   

Tax Paid
  


Calculate the Taxable Income in Year 1 through 6, assuming the MACRS depreciation on the attached, and calculate her yearly taxes, assuming she is single Taxpayer.

Engineering   Civil-Engineering   
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
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she...
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $230,000 $200,000 $52,000 Equipment 80,000 148,000 23,000 Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.)     
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she...
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $230,000 $200,000 $52,000 Equipment 80,000 148,000 23,000 Lily's taxable income before these transactions is $160,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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,...
Bonnie Jo purchased a used computer (5-year property) for use in her sole proprietorship. The basis...
Bonnie Jo purchased a used computer (5-year property) for use in her sole proprietorship. The basis of the computer was $2,800. Bonnie Jo used the computer in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation expense during the first year assuming the sole proprietorship had a loss during the year (Bonnie did not place the property in service in the last quarter):...
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she...
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation Building $234,200 $204,200 $56,200 Equipment 84,200 152,200 27,200 Lily's taxable income before these transactions is $164,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Alisha, who is single, owns a sole proprietorship in which she works as a management consultant....
Alisha, who is single, owns a sole proprietorship in which she works as a management consultant. She maintains an office in her home where she meets with clients, prepares bills, and performs other work-related tasks. She purchased the home at the beginning of year 1 for $400,000. Since she purchased the home and moved into it she has been able to deduct $10,000 of depreciation expenses to offset her consulting income. At the end of year 3, Alisha sold the...
Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions...
Woolard Supplies (a sole proprietorship) has taxable income in 2019 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)...
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179,...
Woolard Supplies (a sole-proprietorship) has taxable income in 2018 of $240,000 before any depreciation deductions (§179, bonus, or MACRS) and placed some office furniture into service during the year. The furniture had been used previously by Liz Woolard (the owner of the business) before it was placed in service by the business. (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset...
1. Beth's business purchased only one asset during the current year (a full 12-month tax year)....
1. Beth's business purchased only one asset during the current year (a full 12-month tax year). Beth placed in service machinery (7-year property) on December 1 with a basis of $65,000. Calculate the maximum depreciation expense (ignoring §179 and bonus depreciation). (Use MACRS Table 2) MULTIPLE CHOICE $2,321 $3,250 $9,289 $13,000 None of the choices are correct. 2. Tom Tom LLC purchased a rental house and land during the current year for $152,000. The purchase price was allocated as follows:...
An investor borrows $200,000 (in year zero) at an annual interest rate of 10%. The equipment...
An investor borrows $200,000 (in year zero) at an annual interest rate of 10%. The equipment purchased with the borrowed money will produce revenues of $90,000 annually and has operating costs of $15,000 annually for Years 1 through 5. The capital cost is depreciable over 6 years (from year 0 to year 5) based on MACRS 5-year life depreciation with the half year convention (table A-1 at IRS). The machine has no salvage value and there is no working capital...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT