In year 0, Longworth Partnership purchased a machine for $48,000 to use in its business. In...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In year 0, Longworth Partnership purchased a machine for $48,000 to use in its business. In year 3, Longworth sold the machine for $41,100. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $28,400. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $52,500? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $12,000? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) In year 0, Longworth Partnership purchased a machine for $48,000 to use in its business. In year 3, Longworth sold the machine for $41,100. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $28,400. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $52,500? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $12,000? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss)
Expert Answer:
Answer rating: 100% (QA)
Answer particulars Amount realised Original basis Amolent 48000 A... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
Students also viewed these accounting questions
-
In year 0, Longworth Partnership purchased a machine for $57,500 to use in its business. In year 3, Longworth sold the machine for $38,800. Between the date of the purchase and the date of the sale,...
-
On August 1 of year 0, Dirksen purchased a machine for $28,750 to use in its business. On December 4 of year O, Dirksen sold the machine for $28,000. Use MACRS Table. (Loss amounts should be...
-
Consider a set of documents. Assume that all documents have been normalized to have unit length of 1. What is the "shape" of a cluster that consists of all documents whose cosine similarity to a...
-
During recessions, U.S. firm lay off a larger proportion of their workers than Japanese firm do. (It has been claimed that Japanese firms continues to produce at high levels and store the output or...
-
The daily number of orders filled by the parts department of a repair shop is a random variable with \(\mu=142\) and \(\sigma=12\). According to Chebyshev's theorem, with what probability can we...
-
The weights of bags of baby corns are normally distributed, with a mean of 500 grams and a standard deviation of 25 grams. Bags in the upper 2% are too heavy and must be repackaged. What is the most...
-
In order to encourage employee ownership of the company's $1 par common shares, Washington Distribution permits any of its employees to buy shares directly from the company through payroll deduction....
-
2. A child with a mass of 35 kg is sitting 1.10 m from the center of a merry-go-round moving with a speed of 1.25 m/s. Calculate the centripetal acceleration of the child and the net horizontal force...
-
Landover Corporation is looking for a larger office building to house its expanding operations. It is considering two alternatives. The first is a newly constructed building at a cost of $6 million....
-
You are married and have just declared $ 1 9 , 2 7 7 . 2 5 in federal income tax in 2 0 1 8 . The solution to the equation 1 9 , 2 7 7 . 2 5 = 0 . 3 ( x - 1 8 4 4 5 ) + 1 2 3 0 . 7 5 represents your...
-
Estimate the exact maximum stress in example 9.7 using the last three data. Compare the convergence rate and estimated exact stress with those of example 9.7. Data From Example 9.7: Calculating the...
-
A house located in Denver, CO, has R-11 walls (1,650 ft 2 ), R-19 ceiling (2,000 ft 2 ), and R-2 windows (200 ft 2 ). Assume that the infiltration/ventilation rate is 0.75 ACH. a. Estimate the annual...
-
Identify the following data as cross-section, time series, or panel data: a. Unemployment rates in Germany, Japan, and the United States in 2010. b. Unemployment and inflation rates in Germany,...
-
(continuation) Identify the following data as cross-section, time series, or panel data: a. Blood pressure of one woman every two years. b. The average HDL cholesterol level of the men in 1948, 1958,...
-
The Framingham Heart Study began in 1948 with 5,209 adult subjects, who have returned every two years for physical examinations and laboratory tests. The study now includes the children and...
-
Why do employees from small businesses need to be aware of the impact of their nonverbal messages? Explain.
-
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
-
Pierre recently received a tax penalty for failing to file a tax return. He was upset to receive the penalty, but he was comforted by the thought that he will get a tax deduction for paying the...
-
Explain if the tax consequences are the same whether a shareholder contributes property to a corporation in a 351 transaction or as a capital contribution.
-
Antonio received 40 ISOs at the time he started working for Zorro Corporation six years ago (each option gives him the right to purchase 20 shares of Zorro stock for $3 per share). Zorro's share...
-
Which form of financing allows the source of the funds to share in the wealth if the company which received the financing does well? a. A loan b. An investment c. Both a loan and an investment d....
-
Which form of financing requires repayment, regardless of whether the company receiving the funds does well or not? a. A loan b. An investment c. Both a loan and an investment d. Neither a loan nor...
-
What are vertical and horizontal financial statement analyses? What are their advantages?
Study smarter with the SolutionInn App