EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It
Question:
EzTech used the straight-line method to calculate depreciation on the warehouse and has no non-recaptured Section 1231 losses.
a. Compute EzTech€™s taxable income.
b. Re-compute taxable income assuming that EzTech used the land in its business instead of holding it for investment.
Transcribed Image Text:
Initial BasisC. Depr. Sale Price Machinery Office equipment Warehouse Investment securities Investment land S 97,500 50,000 163,500 72,700 350,000 $39,660 12,470 21,620 n/a n/a $ 70,000 57,500 125,000 83,100 328,000
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a EzTechs gains and losses from sales of business assets are computed and characterized as follows E...View the full answer
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Related Book For
Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
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