Lemon Corporation purchased a building in 1980 for $900,000. During 2018, the building was sold for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Lemon Corporation purchased a building in 1980 for $900,000. During 2018, the building was sold for $700,000 when the accumulated depreciation was $600,000 (SL would have been $440,000). What is the amount and character of gain recognized on the sale? Ordinary Income a. $248,000 b. $160,000 c. $400,000 d. $208,000 e. None of the above. Sec, 1231 $152,000 $240,000 $ 0 $192,000 Lemon Corporation purchased a building in 1980 for $900,000. During 2018, the building was sold for $700,000 when the accumulated depreciation was $600,000 (SL would have been $440,000). What is the amount and character of gain recognized on the sale? Ordinary Income a. $248,000 b. $160,000 c. $400,000 d. $208,000 e. None of the above. Sec, 1231 $152,000 $240,000 $ 0 $192,000
Expert Answer:
Answer rating: 100% (QA)
If the sale of section 1231 property is less than the depreciation or amortization on the prope... View the full answer
Related Book For
Andersons Business Law and the Legal Environment
ISBN: 978-1133587583
22nd edition
Authors: David P. Twomey, Marianne M. Jennings
Posted Date:
Students also viewed these accounting questions
-
In 1997, Isbell purchased a building in San Diego with the intent to open an adult entertainment establishment there. Because this building was located within 1,000 feet of a residential area,...
-
On January 1, 2007, Zui Corporation purchased a building and equipment that had the following useful lives, residual values, and costs: Building: 40-year estimated useful life, $50,000 residual...
-
On January 1, 2010, Zui Corporation purchased a building and equipment that had the following useful lives, residual values, and costs: Building: 40-year estimated useful life, $50,000 residual...
-
Dwights preferences over beer and whiskey satisfy more is better, but are concave (thus violating the usual assumption of convexity). a. On a diagram, sketch what such indifference curves would look...
-
What are the primary capabilities, advantages, and disadvantages of direct distribution, DCs, and cross-docks?
-
In Figure a, a circular loop of wire is concentric with a solenoid and lies in a plane perpendicular to the solenoid's central axis. The loop has radius 6.00 cm. The solenoid has radius 2.00 cm,...
-
What kind of account is Sales Returns and Allowances? Where would it appear on the financial statements?
-
Currently, at a price of $1 each, 100 popsicles are sold per day in the perpetually hot town of Rostin. Consider the elasticity of supply. In the short run, a price increase from $1 to $2 is...
-
Now assume that Obermeyer s initial production commitment cannot exceed 2 2 , 5 0 0 units. How many units should Obermeyer order during the initial production phase?
-
What is each shareholder's realized gain or loss? b. What is each shareholder's recognized gain or loss? c. What is each shareholder's basis in their stock? When does their holding period begin? d....
-
Create a side by side common size income statement for Cam Bowls Soup Company for 2015 & 2016. 2015 2016 COGS 3,134,040 3,745,560 Corporate income tax 142,187 656,160 Depreciation Exp 35,672 49,049...
-
You have two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -161,000 -111,000 1 29,800 59,700 2 50,100 45,100 3 70,100 29,700 4 90,000 19,900 Irrespective of the project, the...
-
You will invest $ 2 0 0 per year. If the rate is 9 . 0 8 % , how much will you have in 1 8 years?
-
Inventory information for Cut Above, Inc. is provided below. Sales for the period were 2,000 units at $10 each. The company uses FIFO. Date Number of Units Unit Cost Jan. 1 Beginning inventory 1000...
-
Clark Company's current year income statement, comparative balance sheets, and additional information follow. For the year. (1) all sales are credit sales. (2) all credits to Accounts Receivable...
-
Luke Corporation produces a variety of products, each within its own division. Last year, the managers at Luke developed and began marketing a new chewing gum, Bubbs, to sell in vending machines. The...
-
Two particles collide with a normal direction defined: 0.7i+0.714j (=0.714i+-0.7j). The first mass has a mass of 5 kg and a velocity of 7i m/s. The second mass has a mass of 3 kg and a velocity of...
-
Tiger, Inc. signed a lease for equipment on July 1, 2007.The lease is for 10 years (the useful life of the asset).The first of 10 equal annual payments of $500,000 was made on July 1, 2007.The...
-
Explain why a company would want to perform a self-audit to determine whether it has any environmental violations.
-
Sony and others own the copyrights and exclusive licenses to their various sound recordings. Without permission, 40 unidentified individuals (called Does) used "Fast Track," an online media...
-
Taback began building a vacation home on a parcel of wooded land. It was to be a three-story house, 31 feet high. This height violated the local zoning ordinance that limited residential homes to two...
-
In a Hartnell governor, if the stiffness of spring is increased, the governor will (a) become more sensitive (b) become less sensitive (c) remain unaffected (d) start hunting.
-
A Porter governor has all the four arms of 250 mm length each. All the upper arms and the sleeve arms are pivoted on the axis of rotation. The mass of each governor ball is 0.9 kg. The mass on the...
-
The lengths of upper and lower arms of a Porter governor are 220 mm and 260 mm respectively. All the arms are pivoted on the axis of rotation. The central load is 125 N and weight of each ball is 15...
Study smarter with the SolutionInn App