Myrna operates a plumbing business as a sole proprietorship. During the year, she sells the business to
Question:
Myrna acquired the building 10 years ago for $70,000. She acquired the equipment on various dates, paying a total of $30,000 for it. What are the tax consequences of the sale for Myrna?
Transcribed Image Text:
Adjusted Basis S 6,000 42,500 10,000 6,500 0- $65,000 Purchase Price Plumbing parts Building Land Equipment Goodwill Total assets S 8,000 93,900 15,100 30,600 27,400 $175,000
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Because a sole proprietorship is not a separate entity the liquidation or termination of the busines...View the full answer
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Related Book For
Concepts In Federal Taxation 2016
ISBN: 9781305585133
23rd Edition
Authors: Kevin Murphy, Mark Higgins
Question Posted:
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