PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Textbook Question
Chapter 8, Problem 26AP
Firm OCS sold business equipment with a $20,000 initial cost basis and $7,315
- a. Amount realized was $10,000.
- b. Amount realized was $13,000.
- c. Amount realized was $17,500.
- d. Amount realized was $22,500.
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Students have asked these similar questions
In year 1, Firm A paid $49,000 cash to purchase a tangible business asset. In year 1 and year 2, it deducted $3,040 and $6,600
depreciation with respect to the asset. Firm A's marginal tax rate in both years was 21 percent.
Required:
a. Compute Firm A's net cash flow attributable to the asset purchase in each year.
b. Compute Firm A's adjusted basis in the asset at the end of each year.
Complete this question by entering your answers in the tabs below.
Required A Required B
Compute Firm A's net cash flow attributable to the asset purchase in each year.
Note: Cash outflows should be indicated by a minus sign. Round your intermediate calculations and final answers to nearest
whole dollar amount.
Before-tax cash flows
Tax (cost) or savings
Net cash flow
Year 1
Year 2
Firm OCS sold business equipment with a $23,000 initial cost basis and $10,015accumulated tax depreciation. In each of the following cases, compute OCS’srecaptured ordinary income and Section 1231 gain or loss on the sale.Required:a Amount realized was $10,600.b. Amount realized was $13,600.c. Amount realized was $18,100.d. Amount realized was $26,100.
5.
During the current year an entity sold a piece of equipment used in production. The equipment had been accounted for using the revaluation method and details of the accounts and sale are presented below:
Sales price
P100,000
Equipment carrying amount (net)
90,000
Revaluation surplus
20,000
Which of the following is correct regarding recording the sale?
Group of answer choices
The gain that should be recorded in other comprehensive income is P10,000
The gain that should be recorded in profit and loss is P10,000; the P20,000 revaluation surplus may be transferred to retained earnings.
The gain that should be recorded in other comprehensive income is P30,000
The gain that should be recorded in profit and loss is P30,000
Chapter 8 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 8 - BBB Company, which manufactures industrial...Ch. 8 - Prob. 2QPDCh. 8 - Prob. 3QPDCh. 8 - Prob. 4QPDCh. 8 - Does the characterization of gain or loss as...Ch. 8 - Distinguish between a firms tax basis in an asset...Ch. 8 - Both Corporation A and Corporation Z have business...Ch. 8 - Mrs. Carly called her accountant with a question....Ch. 8 - Prob. 9QPDCh. 8 - Mr. K realized a loss on the sale of an asset to...
Ch. 8 - Prob. 11QPDCh. 8 - Prob. 12QPDCh. 8 - Prob. 13QPDCh. 8 - Prob. 14QPDCh. 8 - Prob. 1APCh. 8 - Several years ago, PTR purchased business...Ch. 8 - Prob. 3APCh. 8 - Prob. 4APCh. 8 - Prob. 5APCh. 8 - Prob. 6APCh. 8 - TPW, a calendar year taxpayer, sold land with a...Ch. 8 - Refer to the facts in the preceding problem and...Ch. 8 - Refer to the facts in problem 7. In the first year...Ch. 8 - Prob. 10APCh. 8 - Prob. 11APCh. 8 - In year 1, Aldo sold investment land with a 61,000...Ch. 8 - Prob. 13APCh. 8 - Prob. 14APCh. 8 - Silo Inc. sold investment land to PPR Inc. for...Ch. 8 - Prob. 16APCh. 8 - Prob. 17APCh. 8 - Prob. 18APCh. 8 - Shenandoah Skies is the name of an oil painting by...Ch. 8 - Koil Corporation generated 718,400 ordinary income...Ch. 8 - Prob. 21APCh. 8 - Alto Corporation sold two capital assets this...Ch. 8 - Zeno Inc. sold two capital assets in 2019. The...Ch. 8 - Prob. 24APCh. 8 - Prob. 25APCh. 8 - Firm OCS sold business equipment with a 20,000...Ch. 8 - Prob. 27APCh. 8 - Prob. 28APCh. 8 - This year, QIO Company generated 192,400 income...Ch. 8 - Prob. 30APCh. 8 - Prob. 31APCh. 8 - Since its formation, Roof Corporation has incurred...Ch. 8 - Corporation Q, a calendar year taxpayer, has...Ch. 8 - Prob. 34APCh. 8 - Firm P, a noncorporate taxpayer, purchased...Ch. 8 - Prob. 36APCh. 8 - Prob. 37APCh. 8 - Prob. 38APCh. 8 - A taxpayer owned 1,000 shares of common stock in...Ch. 8 - Prob. 40APCh. 8 - Prob. 41APCh. 8 - Prob. 42APCh. 8 - Prob. 43APCh. 8 - A fire recently destroyed a warehouse owned by...Ch. 8 - Prob. 45APCh. 8 - Bali Inc. reported 605,800 net income before tax...Ch. 8 - Prob. 47APCh. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 1IRPCh. 8 - Prob. 2IRPCh. 8 - Prob. 3IRPCh. 8 - Prob. 4IRPCh. 8 - Prob. 5IRPCh. 8 - Prob. 6IRPCh. 8 - Firm WD sold depreciable realty for 225,000. The...Ch. 8 - Prob. 8IRPCh. 8 - Prob. 9IRPCh. 8 - Prob. 10IRPCh. 8 - Prob. 11IRPCh. 8 - For the past 12 years, George Link has operated...Ch. 8 - Prob. 2RPCh. 8 - Prob. 3RPCh. 8 - Prob. 4RPCh. 8 - Firm Z, a corporation with a 21 percent tax rate,...Ch. 8 - Mr. RH purchased 30 acres of undeveloped ranch...Ch. 8 - Prob. 3TPCCh. 8 - Prob. 4TPCCh. 8 - Prob. 5TPC
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Depreciation -MACRS; Author: Ronald Moy, Ph.D., CFA, CFP;https://www.youtube.com/watch?v=jsf7NCnkAmk;License: Standard Youtube License