Loose Leaf for McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
10th Edition
ISBN: 9781260189728
Author: Brian C. Spilker Professor, Benjamin C. Ayers, John Robinson Professor, Edmund Outslay Professor, Ronald G. Worsham Associate Professor, John A. Barrick Assistant Professor, Connie Weaver
Publisher: McGraw-Hill Education
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Chapter 11, Problem 51P
Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6.
- a) Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
- b) Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
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Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6.
a. Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
Bourne Guitars, a corporation, reported a $232,000 net §1231 gain for year 6.
b. Assuming Bourne's nonrecaptured net §1231 losses from years 1-5 were $248,000, what amount of Bourne's net §1231 gain for year
6, if any, is treated as ordinary income?
Bourne's gain treated as ordinary income
[The following information applies to the questions displayed below.]
Bourne Guitars, a corporation, reported a $232,000 net §1231 gain for year 6.
a. Assuming Bourne reported $58,500 of nonrecaptured net §1231 losses during years 1-5, what amount of Bourne's net §1231 gain for
year 6, if any, is treated as ordinary income?
Bourne's gain treated as ordinary income
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Loose Leaf for McGraw-Hill's Taxation of Individuals and Business Entities 2019 Edition
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