Much after the fact, you discover that old medical equipment was sold to an unrelated party for
Question:
Much after the fact, you discover that old medical equipment was sold to an unrelated party for $75,000 cash. The original cost of the equipment was $300,000 and it was fully depreciated (no Sec. 179). The cash was deposited in one of the shareholders personal accounts.
1. Provide a journal entry to calculate the gain on sale and adjust the fixed asset and accumulated depreciation accounts.
2. What is the nature of this gain?
3. Could the Dr. have structured this sale in a unique way to avoid taxable income? How?
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Since the machine is fully depreciated the accumulated depreciation ac...View the full answer
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Victoria Dimatteo
As a 4th year Ohio State University student on the pre-veterinary track, I will be applying to veterinary colleges this summer. I have taken my classes seriously and have gained extensive experience in the field to prepare myself for rigorous coursework while achieving my dream goal to obtain a DVM. While in college, I have made the decision to be an undergraduate teaching assistant for Animal Sciences 3140: Anatomy & Physiology, a pre-requisite course for many veterinary colleges.
During my time as a UTA, I have thoroughly enjoyed helping students better understand material and have taken into consideration different learning styles in order to ensure students do not feel stuck or discouraged. I highly encourage questions and attempt to connect various topics to one another to hopefully show my students the "bigger picture". I also take great pride in properly preparing my students for exams and have received feedback that my review sessions positively impacted student learning and information retention. As a result, I am incredibly thrilled when I can help students feel much more confident about material and I will encourage them to keep trying until they feel comfortable with the subject matter. It's perfectly acceptable to encounter obstacles when learning and it's crucial for students to understand they can overcome these learning curve hurtles!
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Related Book For 
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
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Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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