Cristo Corporation sold a number of assets in May of 2022 as summarized in the table...
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Cristo Corporation sold a number of assets in May of 2022 as summarized in the table below. These were the only assets Cristo sold during the year. DATE PIS (M/YY) ASSET Jul-93 Warehouse Land (beneath Jul-93 warehouse) 12-Apr Automobiles Manufacturing 13-Jan equipment QUESTION 27 ACCUM. DEPR./ AMORT. $1,240,000.00 $ 994,000 $ 246,000 $2,000,000 $ 1,754,000 INITIAL BASIS QUESTION 29 TAX BASIS SALES PRICE $ 210,000.00 $ $ 121,000.00 $ $ 887,000.00 $ 612,450 $ 274,550 $ $ 56,000 $ GAIN/ (LOSS) 210,000 $ 350,000 $ 140,000 65,000 $ 42,500 $ (22,500) 382,000 $ 107,450 How much of the gain on the sale of the warehouse will Cristo Corporation treat as ordinary income as a result of depreciation recapture? QUESTION 28 How much of the gain on the sale of the land will Cristo Corporation treat as ordinary income as a result of depreciation recapture? How much of the loss on the sale of automobiles will Cristo Corporation treat as ordinary loss as a result of depreciation recapture? QUESTION 30 How much of the gain on the sale of manufacturing equipment will Cristo Corporation treat as ordinary income as a result of depreciation recapture? Cristo Corporation sold a number of assets in May of 2022 as summarized in the table below. These were the only assets Cristo sold during the year. DATE PIS (M/YY) ASSET Jul-93 Warehouse Land (beneath Jul-93 warehouse) 12-Apr Automobiles Manufacturing 13-Jan equipment QUESTION 27 ACCUM. DEPR./ AMORT. $1,240,000.00 $ 994,000 $ 246,000 $2,000,000 $ 1,754,000 INITIAL BASIS QUESTION 29 TAX BASIS SALES PRICE $ 210,000.00 $ $ 121,000.00 $ $ 887,000.00 $ 612,450 $ 274,550 $ $ 56,000 $ GAIN/ (LOSS) 210,000 $ 350,000 $ 140,000 65,000 $ 42,500 $ (22,500) 382,000 $ 107,450 How much of the gain on the sale of the warehouse will Cristo Corporation treat as ordinary income as a result of depreciation recapture? QUESTION 28 How much of the gain on the sale of the land will Cristo Corporation treat as ordinary income as a result of depreciation recapture? How much of the loss on the sale of automobiles will Cristo Corporation treat as ordinary loss as a result of depreciation recapture? QUESTION 30 How much of the gain on the sale of manufacturing equipment will Cristo Corporation treat as ordinary income as a result of depreciation recapture?
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Step 11 27 The gain on the sale of the warehouse is 760000 2000000 sales price 1240000 initial basis ... 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:
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