Question: Need help with D, F, G Enter a decrease as a negative number by using the minus sign. If there is no effect, enter o.

Need help with D, F, G Need help with D, F, G Enter a decrease as a negative

Enter a decrease as a negative number by using the minus sign. If there is no effect, enter "o". Taxable Income Increase (Decrease) 10,000 E&P Increase (Decrease) -24,000 22,400 120,000 Transaction a. Realized gain of $80,000 on involuntary conversion of building ($10,000 of gain is recognized). b. Mining exploration costs incurred on May 1 of current year; $24,000 is deductible from current-year taxable income. c. Sale of equipment to unrelated third party for $240,000; basis is $120,000 (no election out of installment method; no payments are received in current year). d. Dividends of $20,000 received from 5% owned corporation, together with dividends received deduction (assume that taxable income limit does not apply) e. Additional first-year (bonus) depreciation of $45,000 claimed in current year. 1. Section 179 expense deduction of $25,000 in current year. 6,000 14,000 -45,000 45,000 -100,000 80,000 0. Impact of current-vear 5 179 expense deduction in succeeding year. -20,000 x -80,000 - 10,000 h. MACRS depreciation of $80,000. ADS depreciation would have been $90,000 i. Federal income taxes of $80,000 paid in current year, - 80 000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!