Question: On April 23 Mrs Y purchased a taxi business from

On April 23, Mrs. Y purchased a taxi business from Mr. M for a $60,000 lump-sum price. The business consisted of a two-year-old taxicab worth $19,000, Mr. M’s license to operate a taxi business in Baltimore, his list of regular customers, and his registered business name “On Time Any Time Taxi.” Mrs. Y operated the business from April 24 through the end of the year.
a. Compute Mrs. Y’s taxable income from the taxi business if her taxable income before any cost recovery deductions was $36,890. Assume Mrs. Y wants to minimize taxable income.
b. Compute Mrs. Y’s taxable income from the taxi business if her taxable income before any cost recovery deductions was $17,100. Assume Mrs. Y wants to minimize taxable income.



Sale on SolutionInn
Sales0
Views103
Comments
  • CreatedNovember 03, 2015
  • Files Included
Post your question
5000