The following assets in Donald's business were sold in 2021: Asset Office equipment Automobile ABC stock...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following assets in Donald's business were sold in 2021: Asset Office equipment Automobile ABC stock (capital asset) Holding Period 6 years 8 months 2 years Gain/(Loss) $10,000 ($1,000) $1,500 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,000. The ABC stock was purchased for $1,800 and sold for $3,300. In 2021 (the year of sale), Donald should report what amount of net capital gain and net ordinary income? O a $10,500 LTCG. O b. $3,500 LTCG and $7,000 ordinary gain. O $11,500 LTCG and $1,000 ordinary loss. Od. $2,500 LTCG and $8,000 ordinary gain. e. None of the above The following assets in Donald's business were sold in 2021: Asset Office equipment Automobile ABC stock (capital asset) Holding Period 6 years 8 months 2 years Gain/(Loss) $10,000 ($1,000) $1,500 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,000. The ABC stock was purchased for $1,800 and sold for $3,300. In 2021 (the year of sale), Donald should report what amount of net capital gain and net ordinary income? O a $10,500 LTCG. O b. $3,500 LTCG and $7,000 ordinary gain. O $11,500 LTCG and $1,000 ordinary loss. Od. $2,500 LTCG and $8,000 ordinary gain. e. None of the above
Expert Answer:
Answer rating: 100% (QA)
Capital Loss on sale of Automobile 1000 Capital Gain on sal... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-7. Ivan sold the following securities during the year and received a Form 1099-B that...
-
Direct Materials Budget The MSC Company has anticipated its unit sales for the first half of 2022 as follows: 2022 Units January 12,000 February 14,000 March 15,000 16,000 17,000 18,000 April May...
-
1. Identify the steps in the development of an activity-based costing system. 2. Differentiate between value-added and nonvalue-added activities.
-
If the risk-free rate is 6% and the expected rate of return on the market portfolio is 13%, is a security with a beta of 1.25 and an expected rate of return of 16% overpriced or underpriced?
-
The stockholders' equity of Lakewood Occupational Therapy, Inc., on December 31, 2009, follows. On April 30, 2010, the market price of Lakewood's common stock was $14 per share and the company...
-
Carl, a salesman for Smith, comes to Bensons home and sells him a complete set of gourmet cooking utensils that are worth approximately $300. Benson, an eighty-year-old man living alone in a one-room...
-
Solve each integrals k(b-a) dr 0323 b a K(r-a) dr
-
Comparative financial statement data of Stow Optical Mart follow: Other information: 1. Market price of Stow Optical Mart common stock: $122.91 at December 31, 2018, and $165.75 at December 31, 2017...
-
The owner of a package delivery business is currently evaluating the choice between two different cost structures, based on how the delivery personnel are paid. One option (hereafter, "Alternative...
-
Marwick s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $ 1 , 4 9 9 per unit and then sells them to retail customers for an average price of $ 2 , 3 0 0...
-
You are an auditor at Andersen Auditing Firm. Your manager has asked you to evaluate a colleague's engagement and identify the engagement type based on the Statements on Standards for Accounting and...
-
Splish Repair Shop had the following transactions during the first month of business as a proprietorship. Journalize the transactions. (If no entry is required, select "No entry" for the account...
-
On January 1, 2020, Sage Company issued 10-year, $1,810,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Sage common stock. Sage's net income in 2020 was $403,200,...
-
On January 1, 2022, ABC acquired 80% of XYZ voting shares for $200,000. As of that date, XYZ reported in its equity section of the balance sheet common shares outstanding of $75,000 and retained...
-
Consider a simple one-period binomial framework, where you want to price a one-year European put with strike $45 on Stock X. This stock does not pay dividends, is currently priced at $50 per share,...
-
Havel says the grocer doesnt believe what is on the sign and indeed, he says the grocers customers will barely notice it. But Havel maintains that the sign serves a specific function. How would you...
-
Frederick (Freddy) Freeweights (age 42) owns and operates a health club called ''Treadmills West.'' The business is located at 4321 Arnold Street, Alpine, CA 91901. Freddy had the following income...
-
On July 1, 2012, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $35,000. The expenses associated with the sale of his home...
-
Clarita is a single taxpayer with two dependent children, ages 10 and 12. Clarita pays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all from wages) for the...
-
Third quartile = _______
-
Interquartile range (IQR) = _____ _____ = _____
-
Find the mean for the following frequency tables. Frequency a. Grade 49.5-59.5 2 59.5-69.5 3 69.5-79.5 8 79.5-89.5 12 89.5-99.5 5 Table 2.51 b. Daily Low Temperature Frequency 49.5-59.5 53 59.5-69.5...
Study smarter with the SolutionInn App