During the year ended December 31, 2021, management of Alpha Corporation (the Company) decided to sell...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
During the year ended December 31, 2021, management of Alpha Corporation (the Company) decided to sell a piece of its idle equipment. The equipment had an original tax cost of $75,000 and as of December 31, 2020, tax depreciation of $75,000 had been taken on the equipment. The equipment was sold to an unrelated party for $95,000 cash on June 15, 2021. For the purpose of requirement 3, assume that the book cost and book depreciation have been the same as the tax cost and tax depreciation. Question: Calculate the tax gain on sale of the equipment. During the year ended December 31, 2021, management of Alpha Corporation (the Company) decided to sell a piece of its idle equipment. The equipment had an original tax cost of $75,000 and as of December 31, 2020, tax depreciation of $75,000 had been taken on the equipment. The equipment was sold to an unrelated party for $95,000 cash on June 15, 2021. For the purpose of requirement 3, assume that the book cost and book depreciation have been the same as the tax cost and tax depreciation. Question: Calculate the tax gain on sale of the equipment.
Expert Answer:
Answer rating: 100% (QA)
To calculate the tax gain on the sale of the equipment we need t... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0132928939
7th edition
Authors: Thomas H. Beechy, V. Umashanker Trivedi, Kenneth E. MacAulay
Posted Date:
Students also viewed these accounting questions
-
The unclassified statement of financial position accounts for Sorkin Corporation, which is a public company using IFRS, for the year ended December 31, 2016 and its statement of comprehensive income...
-
(a) Why is the MD&A section of the annual report useful to the financial analyst? What types of information can be found in this section? (b) Using the excerpts from the MD&A of the Biolase,...
-
The unclassified balance sheet accounts for Sorkin Corporation, which is a public company using IFRS, for the year ended December 31, 2011, and its statement of comprehensive income and statement of...
-
Suppose that triangle ABC is a right triangle with a right angle at C and hypotenuse c. Also note that a is the length of the side opposite angle A and b is the length of the side opposite angle B....
-
The American Institute of Certified Public Accountants (AICPA) has been in existence for many years to help CPAs provide high-quality professional services. Among other activities, in certain...
-
If 2x 3 - 5x - a has a zero at x = 4, what is the value of a?
-
Police in Albemarle County, Virginia, were on the lookout for a stolen orange and black motorcycle that had eluded them in two previous traffic incidents. Officer David Rhodes drove past the home of...
-
Merck & Company is one of the worlds largest pharmaceutical companies. The following data were taken from the companys 2007 annual report. The following data were taken from public stock-price...
-
If taxpayers rent their second home out for up to 14 days per year, they can _______. Unset starred question Avoid paying taxes on the rental income Deduct employment income from taxes Join a...
-
Evie Excellent is trying to create financial statements for her start-up company, Stinky Soaps. Evie began the business on Jan 1, 2023 with a $1,000 investment from her parents. The year 2023 is...
-
2. Which of the following subsets of C are domain. (a) {z : |z 1| < 1}U{z: 2 3| < 1}. (b) {z : |2 1| < 1}U{z: z - 3| < 1}U{1}. (c) {z: Re z x Im z >0}U {0}. (d) {z : Re z x Im z> 0}.
-
Working effectively in a team remotely is challenging. One challenge that could occur is that one or more team members might stop engaging with the team (this could be caused by various reasons,...
-
The structure shown in Figure 2 consists of two cantilever beams with stiffness of EI = 20, 000, 000 kN-mm connected together by two pin-ended rigid struts (i.e., struts can only carry compression or...
-
XKL Co. plans a new project that will generate $135018 of continuous cash flow each year for 9 years and additionally $102141 at the end of the project. If the continuously compounded rate of...
-
When a car drives, the odometer is updated. Use the concept of "keeping a total" to track the total miles driven. Rearrange the following lines to produce a class that keeps and updates such a total....
-
1. The probability density function (pdf) for daily profits at Rectangle Inc. can be described by the following piecewise function (see figure below). -12 = p= - 20 0 P for-12 0 for 0 +10 a) [6...
-
For the given pair of functions, write the composite function and its derivative in terms of one input variable. 6 h(p)=p(t)=1+36-05 P O h(p(t)) = 6 -5 Oh(p(t)) = h(p(t)) = 6 1+3e dh 3 ; 1+6e-45F 6...
-
When the concentration of a strong acid is not substantially higher than 1.0 10-7 M, the ionization of water must be taken into account in the calculation of the solution's pH. (a) Derive an...
-
When a corporation reports financial information by segments, do the segments correspond to specific subsidiaries?
-
What type of company is required to provide segmented reporting?
-
What is the reporting option available to private enterprises for the goodwill impairment test?
-
Use the technique discussed in Section9.4 to develop a GEE approach for zeroinflated Poisson model for count responses in longitudinal studies. Section9.4: 9.4 Marginal Models for Longitudinal Data...
-
The price of a non-dividend paying stock is \($19\) and the price of a three-month European call option on the stock with a strike price of \($20\) is \($1.\) The risk-free rate is 4% per annum. What...
-
A U.S. Treasury bond pays a 7% coupon on January 7 and July 7. How much interest accrues per \($100\) of principal to the bond holder between July 7, 2013, and August 9, 2013? How would your answer...
Study smarter with the SolutionInn App