Lassen Corporation sold a machine to a machine dealer for $20,000. Lassen bought the machine for $64,000 and has claimed $38,000 of depreciation expense on the machine. What gain or loss does Lassen realize on the transaction?

Q: deduction is she allowed?

A: If the painting is treated as personal use property, the amount of the loss is limited to $20,000…

Q: Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the…

A: There are two questions asked by you but as per our protocol we are authorized to answer to solve…

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A: The partnership will be formed with the agreement of two parties. The terms and conditions of the…

Q: Joan sold depreciable property used in her business to Irene for $325,000 cash plus a ten year bond…

A: Recognized gain is defined as the profit which the business make after selling the asset and it is…

Q: Franco converted a building from personal to business use in May 2018 when the fair market value was…

A: Solution:- Given, Franco converted a building from personal to business use in May 2018  The fair…

Q: In March of Year 2, Mason contributed the following two properties, which he acquired in February of…

A: Adjusted base value describes the amount a person has invested in his property. Expenses incurred…

Q: Alejandro purchased a building in​ 1985, which he uses in his manufacturing business. Alejandro used…

A: We have the following information: Original cost of the building: $500,000 Deductions allowed:…

Q: Barry sold depreciable property used in his business to Ken for $192,000 cash plus a bond redeemable…

A: Cash received on sale of property=$192,000 5 years redeemable bonds=$95000 Current value=$98000…

Q: How is the land recorded for § 704(b) book capital account purposes? What is Padgett’s tax basis in…

A: Land: Land is a tangible asset that is presented as a part of fixed assets in the balance sheet.…

Q: Tammy, who is single, purchased 1,000 shares of qualified small business stock in Startup, Inc., in…

A: Qualified Small Business Stock - It is provision 1202, which provides tax benefits to individual who…

Q: in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3,…

A: GENERAL POINTS -   ** UPON THE SALE OF ASSET IF THE SALE PROCEEDS EXCEED THE COST OF ASSET THEN THE…

Q: Abby, a single taxpayer, purchased 10,000 shares of § 1244 stock several years ago at a cost of $20…

A: Long term capital loss:   A long-term capital gain or loss is the gain or loss stemming from the…

Q: Franco converted a building from personal to business use in May 2018 when the fair market value was…

A: Net profit/loss on an asset is computed after making an adjustment for accumulated depreciation to…

Q: Alan Meer inherits a hotel from his grandmother, Mary, on Feb 11 of the current year. Mary bought…

A: In case of inheritance, Adjusted basis for the receiver is fair market value of assets on the date…

Q: Brandon, an individual, began business four years ago and has sold §1231 assets with $6,000 of…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following…

A:

Q: Chauncey, aged 17, sold his 1949 Anteater automobile for $500 to Chang, an adult. Two weeks later…

A: Disaffirmance of the sale can be defined as the act or right of renouncing the contract of sale…

Q: At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S…

A: Loss for the year=$120000 Ann and Becky equally decide share. Ann sold her share to her son Scott on…

Q: Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has…

A: The question is based on the concept of Financial Accounting.

Q: Barry sold depreciable property used in his business to Ken for $192,000 cash plus a bond redeemable…

A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…

Q: Ansel purchased raw land three years ago for $200,000 to hold as an investment. After watching the…

A: It is given that Ansel purchased a raw land as investment for $200,000 three ago now Ansel has…

Q: an ind

A: An income(sum of all total income) that can be received by a person in a full year is termed gross…

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A: Lets understand how to calculate the gain or loss on sales or asset. We first needs to calculate the…

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A: Dividends represent the distribution of profit earned among the shareholders of the company. It is…

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A: Depreciable property means the capital tangible fixed asset which is accounted in books of accounts…

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A: The question is based on the concept of Financial Accounting.

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A: Capital Gain Tax - It is the amount of tax levied on the investor who makes the profit from the…

Q: Butte sold a machine to a machine dealer for $51,200. Butte bought the machine for $53,800 several…

A: Depreciation expense refers to amount of depreciation that is reported on income statement.

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A: Heather's AGI is $100,000 before considering the effects of the fire. Determine her itemized…

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A: Equipment is the asset reported under the head plant, property, and equipment in the balance sheet…

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A: Capital gain can be defined as the income earned from the sale of capital assets. The taxation…

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A: Tax Basis: Tax basis determines the original investment or cost of any asset or property for…

Q: Jack, an individual calendar-year taxpayer engaged in the following transactions: Purchased 100…

A: As per TCGA, capital losses may be deducted only to the extent of capital gains during the year ( No…

Q: Bobert transfers a rental office building (current fair market value of $45,000) that he purchased…

A: Bobert transfers a rental office building which is purchased 20 years ago Current fair value =…

Q: What is correct?

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Q: Sadie sold 11 shares of stock to her brother, George, for $600 sixteen months ago. Sadie had…

A: Sadie's brother receives a dual basis in the stock and the loss of $200 is deferred.  When the stock…

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: Capital Gains/losses - When an asset is vended at a price that is less the price at which it was…

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A: Gain or loss on insured assets:- Generally, businesses take insurance against their fixed assets…

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A: The gain on sale is equal to sum of long term capital gain and income gain.

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A: Installment sales: It refers to the method under which the recognition of revenue will be done not…

Q: Sue has 5,250 shares of Sony stock that have an adjusted basis of $31,500. She sold the 5,250 shares…

A: Given SUE has 5,250 shares of SONY stock that have an adjusted basis of $31,500.She sold the 5,250…

Q: Jocasta owns an apartment complex that she purchased 6 years ago for $750,000. Jocasta has made…

A: Depreciation: Decreasing value of fixed assets over its useful life period.

Q: Alan Meer inherits a hotel from his grandmother, Mary, on February 11 of the current year. Mary…

A: Given that Fair market value of hotel = $725000

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.