Ms. Drake sold a business that she had operated as a sole proprietorship for showed the following assets: Accounts receivable Inventory Furniture and equipment: Cost Accumulated depreciation Leasehold improvements: Cost Accumulated amortization Tax Basis $ 37,750 143,200 50,750 (40,600) 22,000 (4,400)
Q: Shadee Corporation expects to sell 500 sun shades in May and 410 in June. Each shade sells for $127.…
A: Lets understand the basics.Budgets are prepared in the organization in the below mentioned…
Q: In 2018, Fred invested $130,500 in a general partnership. Fred's interest is not considered to be a…
A: A partnership is an arrangement that takes place between two or more than two persons to share the…
Q: aterials bor overhead lable costs Order Order (Decrease)
A: Incremental cost analysis is a technique of descion making in which the relevant cost is compared…
Q: Chuck, Bob, and Bert form CB&B Partnership to run a specialty grocery store. Bert is the day-to-day…
A: In a partnership, the authority of individual partners to act on behalf of the partnership is…
Q: Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive…
A: Journal entries are a primary record of every business transactions.Treasury stock is also known as…
Q: April 1 (balance on hand). 4 8222 13 21 Purchases 29 420 1,050 840 @ $5.30 560 @ 5.70 5.40 350 0…
A: Lets understand the basics.inventory can be calculated using various inventory methods which are,(1)…
Q: Captain Construction Company is engaged in a road construction contract to build a highway over a…
A: Construction contracts are contracts that take a substantial period of time to get completed.…
Q: a. Determine the contribution margin and contribution margin ratio for each segment from the…
A: A contribution margin ratio is the ratio which is measured by the company which shows the percentage…
Q: actors affecting the classification of a cost as direct or indirect include: OA. cost behaviour…
A: Direct Cost:- Costs that are directly related to the production of goods are called direct costs…
Q: Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat.…
A: The income statement is prepared to record the revenue and expenses for the period.The gross margin…
Q: Northern Defense manufactures radar systems. It has just completed the manufacture of its first…
A: Learning curve is the process by which an individual acquires skill, knowledge and ability. When a…
Q: Mills Corporation acquired as a long-term Investment $240 million of 8% bonds, dated July 1, on July…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Arnold Company issues a 5-year, 9% installment note for $28,000 to County Bank. Annual payments are…
A: Journal Entry :To record the transactions in the books of accounts journal entries are used. After…
Q: Identify the accounting principle or assumption that best explains each situation. 1. In December of…
A: Accounting principles refer to the standard prescribed guidelines issued by the accounting board in…
Q: Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and…
A: "FIFO" stands for first-in, first-out, meaning that the oldest inventory items are recorded as sold…
Q: Waterway Company uses an imprest petty cash system. The fund was established on March 1 with the…
A: The petty cash fund is refilled or reconciled by repaying the custodian for expenditures made,…
Q: homes and commercial properties. Last year, Cullumber Roofing spent $67,200 refurbishing the lift.…
A: Incremental method is the comparision of relelavnt cost for desicion making. Relevant cost does not…
Q: Assume a retailing company has two departments-Department A and Department B. The income statement…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: This assignment is designed for practicing both the retailer/merchandiser accounting cycle and your…
A: Inventory is a current asset to the company. It consists of goods available for sale, goods in…
Q: Ralph's Cafe has the following information for June. Cost of materials placed in production Direct…
A: Cost of goods sold (COGS) is the expense incurred by a business to produce or purchase the products…
Q: REI sells snowboards. Assume the following information relates to REI's purchases of snowboards…
A: FIFO (First-In, First-Out) is an inventory method where the oldest items are sold first.LIFO…
Q: Suppose Tulsa Medical Supply Company were to use a single predetermined overhead rate based on…
A: PREDETERMINED OVERHEAD RATEPredetermined rate means the indirect cost rate.Predetermined overhead…
Q: Sell or Process Further Jensen Manufacturing Company makes a partially completed assembly unit that…
A: Differential analysis is a technique for making decisions that analyzes the net outcomes of two…
Q: Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation…
A: The fair market value of an asset is the value which is received at the time of sale of asset in the…
Q: Current Attempt in Progress If total liabilities increased by $98000 and stockholders' equity…
A: Accounting Equation is calculated using following equation -Assets = Liabilities + EquityEvery…
Q: Olongapo Sports Corporation distributes two premium golf balls-Flight Dynamic and Sure Shot. Monthly…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: BIKE Company starts with $3,000 cash to finance its business plan of producing bike helmets using a…
A: Revenue is an important line item in the income statement but the recognition of revenue brings in…
Q: Wilson Foods Corporation leased a commercial food processor on September 30, 2021. The five-year…
A: An agreement of contract that is prepared to transfer the right to use the resources for a…
Q: Required information Exercise 5-6A (Static) Income tax effect of shifting from FIFO to LIFO LO 5-1…
A: Calculating net cash flow from operational activities is similar to determining how much actual cash…
Q: Determine the missing amounts for three different situations. Direct Materials Used (1) (2) S (3)…
A: Total manufacturing costs in the business includes direct materials used, direct labour costs and…
Q: Compute breakeven sales. (Use the rounded contribution margin ratio calculated in the previous part…
A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
Q: At the beginning of the month, the Forming Department of Martin Manufacturing had 27,000 units in…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: On October 1, 2020, Ocean Airways Ltd. purchased a new commercial aircraft for a total cost of…
A: Journal entries consist of all the business financial transactions. They are recorded in…
Q: Assessing Financial Statement Effects of Trading and Available-for-Sale Securities Use the…
A: This equation is the foundation of double-entry bookkeeping, which is the standard method for…
Q: Skip to question [The following information applies to the questions displayed below.] Cool Sky…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: The following selected transactions apply to Topeca Supply for November and December, Year 1.…
A: Sales Tax is a ledger that is used to record sales tax collected by the organization at the time of…
Q: Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate…
A: The high-low method is used to separate the fixed and variable costs from the mixed costs of…
Q: discuss the concept of ordinary shares with examples
A: Answer:- Shares meaning:- Shares are ownership representative units of stock that a firm issues. To…
Q: Gary is struggling with whether to use the practical capacity level or the normal capacity level for…
A: Production costs shall include all the fixed overhead costs and variable overhead costs incurred in…
Q: [The following information applies to the questions displayed below] Ramirez Company installs a…
A: Depreciation allows businesses to match an asset's expense to the revenue it generates over its…
Q: Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: 3) In which of the following funds is it appropriate to record depreciation of capital assets? A)…
A: The Capital Projects Fund is designed to account for the acquisition, construction, or improvement…
Q: Fitz Company reports the following information. Selected Annual Income Statement Data Net income…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Watercraft's predetermined overhead rate is 200% of direct labor. Information on the company's…
A: The overhead is applied to the production on the basis of the pre-determined overhead rate. The…
Q: Mike and Rachel form M&R Partnership. Mike Invests $40,000 cash and Rachel invests $60,000 cash. The…
A: A financial report called a statement of partner's equity tracks changes in all partners' equity…
Q: Assume a company's budgeted unit sales and its required production in units for April are 80,000…
A: The budget is prepared to estimate the requirements for the period. The direct labor budget is…
Q: Sandhill Corporation had the following items in inventory as at December 31, 2023 Item No. A1 B4 C2…
A: Accounting entries made at the conclusion of an accounting period to update specific accounts and…
Q: What type of audit is conducted to provide assurance about various aspects of an organization's…
A: An audit is a systematic and independent examination of an organization's financial records,…
Q: Cullumber Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on…
A: Lets understand the basics.COGS expenses include the costs of collecting raw materials, producing or…
Q: Current Attempt in Progress Assume the following information for Windsor Corp. Accounts receivable…
A: The journal entries are prepared to record the transactions on regular basis. The adjustment entries…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Way Corporation disposed of the following tangible personal property assets in the current year. IITI Date Original Acquired 5/12/17 Asset Date Sold Convention Basis Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) $ 82,500 99,500 42,000 298,600 102,000 7/15/21 HY 3/23/18 3/15/21 MQ 9/17/19 3/13/21 HY 10/11/20 8/21/21 MQ 10/11/21 12/15/21 HY *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deductionWay Corporation disposed of the following tangible personal property assets in the current year. Date Original Acquired 5/12/17 Asset Date Sold Convention Basis Furniture (7-year) Machinery (7-year) Delivery truck* (5-year) Machinery (7-year) Computer (5-year) $ 82,500 99,500 42,000 298,600 102,000 7/15/21 HY 3/23/18 3/15/21 MQ 3/13/21 8/21/21 12/15/21 9/17/19 HY 10/11/20 MQ 10/11/21 HY *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2021 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) (Round your intermediate dollar calculations and final answer to the nearest whole dollar amount.) Depreciation deductionProblem 14-72 (b) (LO. 7, 8, 9) Goyo Industries (a sole proprietorship) sold three § 1231 assets during 2020. Data on these property dispositions are as follows: Sold Asset Cost Acquired Depreciation Sold On For Machine $85,000 08/31/16 $32,000 $60,000 12/04/20 #1 Machine $30,000 11/17/17 $12,000 $15,000 12/04/20 #2 Machine $77,000 02/28/19 $28,000 $51,000 12/04/20 #3 Determine the amount and the character of the recognized gain or loss from the disposition of each asset. If an amount is zero, enter "0". Total Amount of Character of Amount of § 1245 Balance of Asset Gain or Loss Gain or Loss Recapture Gain or Loss Machine #1 $ $ Machine #2 $ 2$ Machine #3 Goyo has of due to § 1245 recapture and $ of § 1231 Assuming Goyo has no nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain.
- Assume that ACW Corporation has 2022 taxable income of $1,520,000 for purposes of computing the §179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Machinery Computer equipment Delivery truck 10-February 21-August Placed in Service 12-September Basis $ 472,000 72,000 Qualified real property (MACRS, 15 year, 150% DB) 2-April Total 95,000 1,382,000 $ 2,021,000 a. What is the maximum amount of §179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022Assume that ACW Corporation has 2023 taxable income of $1,820,000 for purposes of computing the §179 expense. The company acquired the following assets during 2023 (assume no bonus depreciation): (Use MACRS Table 1, Table 2, and Table 5.) Placed in Service 12-September 10-February Delivery truck 21-August Qualified real property (MACRS, 15 year, 02-April 150% DB) Total Asset Machinery Computer equipment a. What is the maximum amount of $179 expense ACW may deduct for 2023? b. What is the maximum total depreciation that ACW may deduct in 2023 on the assets it placed in service in 2023? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2023 b. Maximum total deductible depreciation for 2023 Basis $ 502,000 102,000 125,000 1,412,000 $ 2,141,000 $ $ 1,160,000 1,304,408 XAssume that ACW Corporation has 2022 taxable income of $1,960,000 for purposes of computing the §179 expense. The company acquired the following assets during 2022 (assume no bonus depreciation): (Use MACRS Table 1, Table 2 and Table 5.) Asset Placed in Service Machinery 12-September Basis $ 516,000 Computer equipment Delivery truck 10-February 21-August 116,000 Qualified real property (MACRS, 15 year, 2-April 150% DB) Total 139,000 1,426,000 $ 2,197,000 a. What is the maximum amount of $179 expense ACW may deduct for 2022? b. What is the maximum total depreciation that ACW may deduct in 2022 on the assets it placed in service in 2022? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. a. Maximum §179 expense for 2022 b. Maximum total deductible depreciation for 2022
- Required information [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $16,500 (before the $1231 netting process, if applicable)? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Los) $1231 gain/(loss)Asset Date Acquired Way Corporation disposed of the following tangible personal property assets in the current year. Original Basis Date Sold Furniture (7-year) 5/12/19 7/15/23 Convention HY $ 82,500 Machinery (7-year) 3/23/20 3/15/23 MQ 99,500 Delivery truck* (5-year) 9/17/21 3/13/23 HY 42,000 pped Machinery (7-year) 10/11/22 8/11/23 MQ 298,600 Computer (5-year) 10/11/23 12/15/23 HY 102,000 Book *Used 100 percent for business. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation's 2023 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). (Use MACRS Table 1, Table 2, and Exhibit 10-6.) Note: Round your intermediate dollar calculations and final answer to the nearest whole dollar amount. Depreciation deductionMs. Drake sold a business that she had operated as a sole proprietorship for 18 years. On the date of sale, the business balance sheet showed the following assets: Accounts receivable Inventory Furniture and equipment: Cost Accumulated depreciation Leasehold improvements: Cost Accumulated amortization Tax Basis $ 44,000 185,600 Net cash flow 63,200 (50,560) 21,000 (4,200) Required: The purchaser paid a lump-sum price of $349,000 cash for the business. The sales contract stipulates that the FMV of the business inventory is $190,800, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms. Drake's marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.
- 18 Chaz Corporation has taxable income in 2023 of $1,313,150 for purposes of computing the $179 expense and acquired the following assets during the year: 0.31 points Asset office furniture Computer equipment Delivery truck Qualified real property (MACRS, 15 year, 150% DB) Total September 12 Placed in Service Basis $ 826,000 976,000 February 10 August 21 September 30 eBook Print 114,000 1,545,000 $ 3,461,000 What is the maximum total depreciation deduction that Chaz may deduct in 2023? (Use MACRS Table 1 Table 2. Table 3, Table 4, and Table 5.) Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. References Maximum total depreciation deduction Check my work Activate Windows Go to Settings to activate Windows GrawProblem 14-72 (LO. 7, 8, 9) Siena Industries (a sole proprietorship) sold three § 1231 assets during 2023. Data on these property dispositions are as follows: Accumulated Cost Acquired Depreciation Sold For Sold On Rack $100,000 10/10/19 $62,000 $86,000 10/10/23 Forklift 35,000 10/16/20 23,000 4,000 10/10/23 Bin 87,000 03/12/22 34,000 60,000 10/10/23 Asset If an amount is zero, enter "0". a. Determine the amount and the character of the recognized gain or loss from the disposition of each asset. Total Amount of Amount of § 1245 Recapture Gain or Loss Asset Rack Forklift Bin Siena has loss Feedback ►Check My Work Character of Gain or Loss Ordinary income § 1231 loss Ordinary income X of ordinary income 7,000 X X due to § 1245 recapture and X 0 ✓ 7,000 Balance of Gain or Loss 0 0 X of § 1231 X b. Assuming that Siena has no nonrecaptured net § 1231 losses from prior years, analyze these transactions and determine the amount (if any) that will be treated as a long-term capital gain. 0 ✓Required information [The following information applies to the questions displayed below.] Dain's Diamond Bit Drilling purchased the following assets this year. Asset Drill bits (5-year) Drill bits (5-year) Commercial building Purchase Date January 29 August 11 June 11 Original Basis $ 91,000 96,000 240,000 Assume its taxable income for the year was $63,000 for purposes of computing the $179 expense (assume no bonus depreciation). (Use MACRS Table 1. Table 2. Table 3. Table 4 and Table 5.) Note: Leave no answer blank. Enter zero if applicable. b. What is Dain's maximum depreciation deduction for the year (including §179 expense)? Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Depreciation Deduction (including $179 expense)