Due to financial difficulties resulting from unfortunate business decisions, Mr. Bo Godina has been forced to...

Transcribed Image Text:

Due to financial difficulties resulting from unfortunate business decisions, Mr. Bo Godina has been forced to sell a number of items. An A. Y. Jackson oil painting which he purchased for $140,000 is sold at auction for $180,000, with the auction house claiming a 20% commission on the sale price. An antique armoire that he purchased for $850 is sold privately for $1,300. No selling costs were incurred. A vintage Chris Craft boat (assume person use property) which he purchased several years ago for $85,000 is sold for $61,000 with no related selling costs. As a lifelong admirer of George Bernard Shaw, he had purchased a first edition of the play Pygmalion for $22,000. Since his purchase, the works of Shaw have become less popular. He sold the manuscript for $4,200. . An extensive stamp collection is sold for $16,000. The cost of all of the stamps totalled $12,500. No selling costs were involved. Mr. Godina's father left him a vintage automobile in his will several years ago. Mr. Godina's father had purchased it for $23,000 and spent an additional $17,000 restoring the automobile. The estimated value of the automobile was $60,000 when Mr. Godina received it and he sells it for $110,000, with no related selling costs. Required: Mr. Godina has asked you to determine the minimum amount that would be included in his income for the current year as a result of these dispositions. Indicate any amounts that are available for carry over to other years. Due to financial difficulties resulting from unfortunate business decisions, Mr. Bo Godina has been forced to sell a number of items. An A. Y. Jackson oil painting which he purchased for $140,000 is sold at auction for $180,000, with the auction house claiming a 20% commission on the sale price. An antique armoire that he purchased for $850 is sold privately for $1,300. No selling costs were incurred. A vintage Chris Craft boat (assume person use property) which he purchased several years ago for $85,000 is sold for $61,000 with no related selling costs. As a lifelong admirer of George Bernard Shaw, he had purchased a first edition of the play Pygmalion for $22,000. Since his purchase, the works of Shaw have become less popular. He sold the manuscript for $4,200. . An extensive stamp collection is sold for $16,000. The cost of all of the stamps totalled $12,500. No selling costs were involved. Mr. Godina's father left him a vintage automobile in his will several years ago. Mr. Godina's father had purchased it for $23,000 and spent an additional $17,000 restoring the automobile. The estimated value of the automobile was $60,000 when Mr. Godina received it and he sells it for $110,000, with no related selling costs. Required: Mr. Godina has asked you to determine the minimum amount that would be included in his income for the current year as a result of these dispositions. Indicate any amounts that are available for carry over to other years.

Answer rating: 100% (QA)

Capital Gains and Losses for Mr Godina We need to calculate capital gains and losses for each item M... View the full answer