Question 2 During 2019, Quill Corporation, a calendar year C corporation, sold the following business assets on the dates listed below. Compute the amount and character of the gain or loss Quill Corporation must report from the disposition of each asset. Then determine the sum of each type of gain or loss and the net effect these gains and losses have on Quill Corporation’s 2019 taxable income. Assume that Quill has no Section 1231 losses in prior years. Please show your work and explain your calculations. Asset Acquired Sold Cost CostRecovery AdjustedBasis Sales Price Computer 1/13/18 5/16/2019 $208,000 $74,880 $133,120 $180,000 Office equipment 8/10/15 3/10/2019 $160,000 $117,160 $42,840 $40,000 Office building 7/23/12 2/12/2019 $320,000 $60,000 $260,000 $400,000 Land 7/23/12 2/12/2019 $80,000 $0 $80,000 $100,000
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Question 2 During 2019, Quill Corporation, a calendar year C corporation, sold the following business assets on the dates listed below. Compute the amount and character of the gain or loss Quill Corporation must report from the disposition of each asset. Then determine the sum of each type of gain or loss and the net effect these gains and losses have on Quill Corporation’s 2019 taxable income. Assume that Quill has no Section 1231 losses in prior years. Please show your work and explain your calculations.
|
|
Asset |
Acquired |
Sold |
Cost |
Cost |
Adjusted |
Sales Price |
|
Computer |
1/13/18 |
5/16/2019 |
$208,000 |
$74,880 |
$133,120 |
$180,000 |
|
Office equipment |
8/10/15 |
3/10/2019 |
$160,000 |
$117,160 |
$42,840 |
$40,000 |
|
Office building |
7/23/12 |
2/12/2019 |
$320,000 |
$60,000 |
$260,000 |
$400,000 |
|
Land |
7/23/12 |
2/12/2019 |
$80,000 |
$0 |
$80,000 |
$100,000 |
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