dan purchased machinery (7 yr. property) to use in her business on 9/1/18 at a cost of $ 40,000. This was the only property placed in service in 2018. On 3/1/20 dan sold this equipment for $ 44,000. Answer each part below as follows: 1. What is dan’s recognized gain on the sale of this asset in 2020? 2020 2. If dan has a 37% ordinary income tax marginal rate and a 20% net capital gain tax marginal rate, How much additional tax will dan pay on the gain in part 2?
dan purchased machinery (7 yr. property) to use in her business on 9/1/18 at a cost of $ 40,000. This was the only property placed in service in 2018. On 3/1/20 dan sold this equipment for $ 44,000. Answer each part below as follows: 1. What is dan’s recognized gain on the sale of this asset in 2020? 2020 2. If dan has a 37% ordinary income tax marginal rate and a 20% net capital gain tax marginal rate, How much additional tax will dan pay on the gain in part 2?
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 35P
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dan purchased machinery (7 yr. property) to use in her business on 9/1/18 at a cost of $ 40,000. This was the only property placed in service in 2018. On 3/1/20 dan sold this equipment for $ 44,000. Answer each part below as follows:
1. What is dan’s recognized gain on the sale of this asset in 2020?
-
- 2020
2. If dan has a 37% ordinary income tax marginal rate and a 20% net
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT