Mr. Swartz has recently had to close his business and as a result he find himself...

 

Transcribed Image Text:

Mr. Swartz has recently had to close his business and as a result he find himself in financial difficulty and is forced to sell some of his assets. During 2017 Mr. Swarts sells the following items: A sculpture which he acquired may years ago sold at auction A vintage canoe was sold to a neighbor A first Edition book The Adventures of Tom Sawyer Gramma's Antique Rocking Chair Warehouse Building - Class 1 (only asset in the class) at time of purchase - 40% was allocated to the land and 60% of the cost was allocated to the building. The property is in a desirable location for redeveoplement and the building is in a state of disrepair and now, at the time of sale, is only valued at $50,000 Share in Trench Industries a public corportion Vacant Land - Sold under an agreement for sale of which $10,000 was received at the time of sale and the balance will be paid in 4 equal installments over the next 4 years. REQUIRED: 1. Calculate the mimumum tax consequenced for each of the above transactions. Show all calculations Sale Price $39,983 $2,649 $8,079 $1,624 $256,381 Selling Costs Total Cost $800 $33,256 $447 $3,993 $3,998 $131,389 $73,578 $44,471 $445 $21,180 $76,926 $1,923 $36,846 2. Determine the amount that would be reported under Section 3(b): Taxable Capital Gains over the Allowable Capital Losses. UCC Mr. Swartz has recently had to close his business and as a result he find himself in financial difficulty and is forced to sell some of his assets. During 2017 Mr. Swarts sells the following items: A sculpture which he acquired may years ago sold at auction A vintage canoe was sold to a neighbor A first Edition book The Adventures of Tom Sawyer Gramma's Antique Rocking Chair Warehouse Building - Class 1 (only asset in the class) at time of purchase - 40% was allocated to the land and 60% of the cost was allocated to the building. The property is in a desirable location for redeveoplement and the building is in a state of disrepair and now, at the time of sale, is only valued at $50,000 Share in Trench Industries a public corportion Vacant Land - Sold under an agreement for sale of which $10,000 was received at the time of sale and the balance will be paid in 4 equal installments over the next 4 years. REQUIRED: 1. Calculate the mimumum tax consequenced for each of the above transactions. Show all calculations Sale Price $39,983 $2,649 $8,079 $1,624 $256,381 Selling Costs Total Cost $800 $33,256 $447 $3,993 $3,998 $131,389 $73,578 $44,471 $445 $21,180 $76,926 $1,923 $36,846 2. Determine the amount that would be reported under Section 3(b): Taxable Capital Gains over the Allowable Capital Losses. UCC

Answer rating: 100% (QA)

ANSWER 1 A sculpture which he acquired may years ago sold at auction Sale Price Selling Costs 800 To... View the full answer