Required information Problem 11-54 (LO 11-5) (Static) [The following information applies to the questions displayed below] Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business Net $1231 gains shown are before the look back rule. Note: Leave no answer blank. Enter zero if applicable. Year 1 Year 2 Year 3 Year 4 Year 5 Year Year 6 Year 7 (current year) Net $1231 Gains or (Losses) $ (65,000) 15,000 roblem 11-54 Part-b (Static) Ordinary income 10,000 50,000 Assume that the $50,000 net $1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary come in year 6?
Required information Problem 11-54 (LO 11-5) (Static) [The following information applies to the questions displayed below] Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business Net $1231 gains shown are before the look back rule. Note: Leave no answer blank. Enter zero if applicable. Year 1 Year 2 Year 3 Year 4 Year 5 Year Year 6 Year 7 (current year) Net $1231 Gains or (Losses) $ (65,000) 15,000 roblem 11-54 Part-b (Static) Ordinary income 10,000 50,000 Assume that the $50,000 net $1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary come in year 6?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
Problem 11-54 (LO 11-5) (Static)
[The following information applies to the questions displayed below]
Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business. Net
$1231 gains shown are before the look back rule.
Note: Leave no answer blank. Enter zero if applicable.
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7 (current year)
Net $1231 Gains
or (Losses)
$ (65,000)
15,000
0
10,000
50,000
Problem 11-54 Part-b (Static)
b. Assume that the $50,000 net $1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary
income in year 6?
Ordinary income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda8afccc-2c8f-4a89-92d0-48d32de2bd09%2F7adb2a98-7610-4a6c-9b51-78ae5b36dd1f%2Fap7t9ed_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Problem 11-54 (LO 11-5) (Static)
[The following information applies to the questions displayed below]
Hans runs a sole proprietorship. Hans has reported the following net $1231 gains and losses since he began business. Net
$1231 gains shown are before the look back rule.
Note: Leave no answer blank. Enter zero if applicable.
Year
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7 (current year)
Net $1231 Gains
or (Losses)
$ (65,000)
15,000
0
10,000
50,000
Problem 11-54 Part-b (Static)
b. Assume that the $50,000 net $1231 gain occurs in year 6 instead of year 7. What amount of the gain would be treated as ordinary
income in year 6?
Ordinary income
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