Asset Sales Price $ 733,000 159,000 Cost $ 719,000 224,000 Accumulated Depreciation $ 51,000 n/a Building Sparkle Corporation stock himmer does not sell any other assets during the year, and its taxable income before these transactions is $805,000.
Asset Sales Price $ 733,000 159,000 Cost $ 719,000 224,000 Accumulated Depreciation $ 51,000 n/a Building Sparkle Corporation stock himmer does not sell any other assets during the year, and its taxable income before these transactions is $805,000.
Chapter16: Property Transactions: Capital Gains And Losses
Section: Chapter Questions
Problem 49P
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Transcribed Image Text:Shimmer Incorporated is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:
Accumulated
Depreciation
$ 51,000
n/a
Asset
Building
Sparkle Corporation stock
Description
Taxable income
Tax liability
Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $805,000.
What are Shimmer's taxable income and tax liability for the year?
Sales Price
$ 733,000
159,000
Amount
Cost
$ 719,000
224,000
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