Problem 13-47 (LO 13-3) Jackson invested $190,000 in a passive activity five years ago. On January 1, 2018, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000 loss in 2018, $20,000 loss in 2019, and $80,000 gain in 2020. Required: How much can Jackson deduct in 2018 and 2019?
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Problem 13-47 (LO 13-3)
Jackson invested $190,000 in a passive activity five years ago. On January 1, 2018, his at-risk amount in the activity was $45,000. His share of the income and losses in the activity were $52,000 loss in 2018, $20,000 loss in 2019, and $80,000 gain in 2020.
Required:
- How much can Jackson deduct in 2018 and 2019?
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- Please Answer this ASAP 15. Tina disposed of a painting on 1 July 2022 for $600,000 which she had bought February 2018 for $350,000. She also sold an investment property for $310,000 in December 2022 and incurred agency fees of $75,000 on the disposal. The annual maintenance for the property is $40,000. She bought the property in August 2019 for $200,000. Tina had capital losses brought forward of $12,000. Her Capital gains for 2022 was: а.$53,000 b.$25,000 с. $13,000 d.$65,000#11 Last January 1, 2020, Mrs. Dimalanta started a laundry shop business by contributing cash of P1,500,000. At the end of the year, assets totaled P3,000,000 while liabilities totaled P500,000. Additional contributions made during the year totaled P600,000, while periodic withdrawals totaled P400,000. Determine the net income for 2020.35 The Bonchon Construction Corporation, a VAT-registered taxpayer, had the following data on its construction projects, VAT not yet included, for the last quarter of 2019: Hallmark Building – 100% complete Contract price P20,000,000 Collections in October and November 2019 10,000,000 Partial collection of retention receivable in December 2019 2,000,000 Summit Business Center – to be started in January 2020 Contract price 15,000,000 Cash advances received for mobilization 300,000 Deposits received in 2019 for materials 2,000,000 Purchase of materials from VAT suppliers (of which 70% was paid) 6,000,000 Subcontracting services to VAT service providers during the quarter (of which 80% was paid) 2,250,000 How much is the VAT payable at the end of the quarter?
- Exercise 13-37 (LO. 7) On June 5, 2020, Brown, Inc., a calendar year taxpayer, receives cash of $750,000 from the county upon condemnation of its warehouse building (adjusted basis of $500,000 and fair market value of $750,000). Complete the statements below regarding what must Brown do to qualify for § 1033 postponement if the adjusted basis was instead $795,000. Because Brown has a realized loss on the condemnation of business property, it is automatically recognized . In this case, §1033 does not modify the normal rules of recognition. Therefore, Brown has a realized loss of $fill in the blank of which $fill in the blank is recognized. FeedbackQuestion 3 Mrs. A. spent $25,000 during Year 2 and $35,000 during Year 3 on “research and experimentation” activities described in Section 174 of the Code. She had never heard of section 174, however, so she capitalized these amounts into an asset she characterized as “Research and Development.” She spent another $50,000 on these activities in Year 4 but, before she filed her return for Year 4, she became aware of Section 174. By the end of Year 4, she was almost ready to declare her research complete and undertake to patent and exploit the results. What amount(s) should Mrs. A report in Year 4 with respect to her research and development activities? My professory came up with $0 for each year. I am not sure why.14) The records for Ehrlich Co. show this data for 2021: Accrued revenue recorded on the books was $480,000. Revenue cash collections was $320,000. Life insurance on officers was $2,800. Fine for pollution violation was $1,000. Machinery was acquired in January for $300,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, accelerated depreciation is used and Ehrlich may deduct 15% for 2021. Interest received on tax exempt Florida State bonds was $9,000. The estimated warranty liability related to 2021 sales was $23,000. Repair costs under warranties during 2021 were $12,000. Pretax financial income is $700,000. The tax rate is 25% for this and future years. Instructions (a) Prepare a schedule starting with pretax financial income and compute taxable income. (b) Prepare the journal entry to record income taxes for 2021. (c ) Show the income statement presentation of income tax expense, starting with "income before tax"
- 5. On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Dec 1, $1,500,000. The building was completed on April 30, 2022 Other debt outstanding 10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually 6 year, 10%, $1,600,000 note dated December 31,2018, interest payable annually March 1, 2021 an additional expenditure was made towards construction of $150,000 Interest revenue earned in 2021 $49,000 What is the correct amount of WAC for year 2? Thank you BrendaProblem 13-84 (LO. 8, 9) Karl purchased his residence on January 2, 2019, for $260,000, after having lived in it during 2018 as a tenant under a lease with an option to buy clause. On August 1, 2020, Karl sells the residence for $315,000. On June 13, 2020, Karl purchases a new residence for $367,000. If an amount is zero, enter "0". a. What is Karl's recognized gain? His basis for the new residence?Karl's recognized gain is $fill in the blank aa8a5403c02a012_1, and his basis for the new residence is $fill in the blank aa8a5403c02a012_2. b. Assume that Karl purchased his original residence on January 2, 2018 (rather than January 2, 2019). What is Karl's recognized gain? His basis for the new residence? Karl's recognized gain is $fill in the blank f8cfe3ffcff0ffc_1, and his basis for the new residence is $fill in the blank f8cfe3ffcff0ffc_2. c. In part (a), what could Karl do to minimize his recognized gain?To minimize his recognized gain, he can continue to…Problem 13NOREEN INC, a truck dealer, sells a truck on January 1, 2019, to MENDOZA INC for P3,000,000. NOREEN agrees to repurchase the truck on December 31, 2020 for P3,630,000 Using the information above, what is the interest expense for 2019?2.A. None C. 330,000 B. 300,000 D. 630,000
- 29. Matthew Company started to manufacture in 2012 copying machines that are sold on the installment basis. Matthew recognizes revenue when equipment is sold for financial reporting purposes and when installment payments are received for tax purposes. In 2012, Matthew recognized gross profit of P10,000,000 for financial reporting purposes and P6,000,00 for tax purposes. The amounts of gross profit expected to be recognized for tax purposes in 2013 and 2014 is P2,000,000 each. Matthew guarantees the copying machines for two years. Warranty costs are recognized on the accrual basis for financial accounting purposes and when paid for tax purposes. Warranty expense accrued in 2012 is P2,800,000 but only P1,000,000 of the warranty cost was paid in 2012. It is expected that in 2013 and 2014, P1,100,000 and P700,000, respectively, of warranty costs will be paid. In addition, during 2012, P500,000 interest, net of 20% final income tax, was received and earned, and P200,000 insurance premium on…4. On Dec 31, 2020 Laf borrowed $3,000,000 at 12% payable annually to finance construction of a new building. In 2021 the company made the following expenditures related to this building: March 1, $360,000; June 1, $600,000; July 1, $1,500,000; Dec 1, $1,500,000. The building was completed on April 30, 2022 Other debt outstanding 10 year, $4,000,000, 13% bond, December 31, 2014, interest payable annually 6 year, 10%, $1,600,000 note dated December 31,2018, interest payable March 1, 2021 an additional expenditure was made towards construction of $150,000 Interest revenue earned in 2021 $49,000 Suppose instead that the WAC is equal to $3,300,000 in 2021. What amount of interest expense would be recorded on the balance sheet in relation to the above situation? write your answer as a positive number ($20,000) Assume the same debt structure as discussed above Thank you Brenda28 Burger Company constructed its own building which qualifies for interest capitalization. Burger incurred the following cost and had the following outstanding borrowings while the building is under construction. January 1, 2022 P3,000,000 March 31, 2022 2,500,000 June 30, 2022 2,100,000 November 1, 2022 1,275,000 September 1, 2023 5,575,200 Outstanding borrowings: Dated January 1, 2022 - 3,000,000; 7% (specific) Dated January 1, 2022 - 2,000,000; 10% (general) Dated January 1, 2023 - 4,000,000; 8% (general) The construction was completed on December 31, 2023 and ready for its intended use. How much is the initial cost of the building when completed on December 31, 2023 in Burger financial position?