b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2 (This is the income statement from Lesson 3 showing the 4 sections). Cumulative effect of a change in amortization method (net of $26, 000 tax benefit) $ (136,500) Expenses (related to continuing operations) (2,072,500) Extraordinary gain on expropriated land (net of $71,000 tax expense) 275,500 Gain on disposal of discontinued operation's assets (net of $8,600 tax expense) 37,500 Gain on sale of investment in shares 400,00 Loss from operating discontinued operations (net of $40,000 tax expense) (182,500) Income taxes on income from continuing operations (660,00) Sales 5,375,000 Loss from the sale of plant assets (650,000) *The assets were items of equipment replaced with new technology.

b) Using the information provided, prepare an income statement for 2001 similar to Exhibit 16.2 (This is the income statement from Lesson 3 showing the 4 sections). Cumulative effect of a change in amortization method (net of $26, 000 tax benefit) $ (136,500) Expenses (related to continuing operations) (2,072,500) Extraordinary gain on expropriated land (net of $71,000 tax expense) 275,500 Gain on disposal of discontinued operation's assets (net of $8,600 tax expense) 37,500 Gain on sale of investment in shares 400,00 Loss from operating discontinued operations (net of $40,000 tax expense) (182,500) Income taxes on income from continuing operations (660,00) Sales 5,375,000 Loss from the sale of plant assets (650,000) *The assets were items of equipment replaced with new technology.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 40P

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Chaz Corporation has taxable income in 2021 of $315,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $ 810,000 Computer equipment February 10 960,000 Delivery truck August 21 98,000 Qualified improvement property September 30 1,529,000 Total $ 3,397,000 What is the maximum total depreciation deduction that Chaz may deduct in 2021? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Would you please explain how to find the minimum taxable capital gain to be reported in Year 2? sold capital property in Year 1 for net proceeds of $500,000. The property has an adjusted cost base of $100,000. C received $200,000 at the time of the sale and a note for the balance to be paid in equal annual instalments over the following three years. What is the minimum taxable capital gain to be reported in Year 2?
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Could you please explain why Depreciation Expenses for the year 2021 was calucated as $40,000 x 150% x (3/12)=$1,500
Chaz Corporation has taxable income in 2022 of $312,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $ 780,000 Computer equipment February 10 930,000 Delivery truck August 21 68,000 Qualified real property (MACRS, 15 year, 150% DB) September 30 1,500,000 Total $ 3,278,000 What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.)
Chaz Corporation has taxable income in 2022 of $312,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office furniture September 12 $ 780,000 Computer equipment February 10 930,000 Delivery truck August 21 68,000 Qualified real property (MACRS, 15 year, 150% DB) September 30 1,500,000 Total $ 3,278,000 What is the maximum total depreciation deduction that Chaz may deduct in 2022? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
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Chaz Corporation has taxable income in 2020 of $396,000 for purposes of computing the §179 expense and acquired the following assets during the year: Asset Placed in Service Basis Office Furniture 12-Sep 621,000.00 Computer equipment 10-Feb 948,000.00 Delivery Truck 21-Aug 74,000.00 Qualified property improvement 30-Sep 1,549,000.00 Total 3,192,000.00 What is the maximum total depreciation deduction that Chaz may deduct in 2020? (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Round your answer to the nearest whole dollar amount.)
A. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Assuming that the land acquired in (A) was sold for $2,125,000, how would the various elements of the accounting equation be affected?