FREE Trial

Joe purchased a van for $30,000 on February 1, 20X4, for use with his business, Crew Airport Transport. Joe elected

Question:

Joe purchased a van for $30,000 on February 1, 20X4, for use with his business, Crew Airport Transport. Joe elected to take the Section 179 deduction. On January 1, 20X6, Joe sold the van for $20,000. What were the tax effects of this transaction?

a. $10,000 loss

b. $20,000 capital gain

c. $20,000 ordinary gain

d. $10,000 capital gain, $10,000 ordinary gain

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (3 reviews)

The tax effects of Joe s transaction involving the van can be determined by calculating the gain or …View the full answer


answer-question
Answered By
tutor-profile-image
Ma Kristhia Mae Fuerte
I have extensive tutoring experience, having worked as a private tutor for over three years. I have tutored students from different academic levels, including high school, undergraduate, and graduate levels. My tutoring experience has taught me to be patient, attentive to student needs, and effective in communicating difficult concepts in simple terms. I have a strong background in statistics, probability theory, data analysis, and data visualization. I am proficient in using statistical software such as R, Python, and SPSS, which are commonly used in academic research and data analysis. Additionally, I have excellent communication and interpersonal skills, which enable me to establish rapport with students, understand their learning styles, and adapt my teaching approach to meet their needs. I am passionate about teaching and helping students achieve their academic goals.
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
South Western Federal Taxation 2016 Individual Income Taxes

South Western Federal Taxation 2016 Individual Income Taxes

ISBN: 9781305393301

39th Edition

Authors: James H. Boyd, William H. Jr. Hoffman, David M. Maloney, William A. Raabe, James C. Young

See More Books
Question Details
Chapter # 17- Property Transactions: § 1231 and Recapture Provisions
Section: Review Questions
Problem: 1
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: September 17, 2023 07:55:36
See More Questions

Students also viewed these Business questions

Q:
Joe purchased a van for $30,000 on February 1, 2015, for use with his business, Crew Airport Transport. Joe elected to take the 179 deduction for the entire cost. On January 1, 2017, Joe sold the...
A:
c 20......
Q:
Joe purchased a van for $30,000 on February 1, 2014, for use with his business, Crew Airport Transport. Joe elected to take the 179 deduction for the entire cost. On January 1, 2016, Joe sold the...
A:
c 20......
Q:
Multiple Choice Questions 1. Identify which of the following is a capital asset: I. A canvas painting of a portrait client, in the painter's hands II. Depreciable fixtures in a business parking lot...
A:
1 d None of the above 2 d 2 000 long t......
Q:
A 0.20-m-diameter, thin-walled steel pipe is used to transport saturated steam at a pressure of 20 bars in a room for which the air temperature is 25C and the convection heat transfer coefficient at...
A:
KNOWN Saturated steam conditions in a pipe with prescribed surroundings FIND a Heat loss per unit le......
Q:
Consider the following multifactor (APT) model of security returns for a particular stock. a. If T-bills currently offer a 6% yield, find the expected rate of return on this stock if the market views...
A:
a E r 6 1 2 6 0 5 8 0 3 3 18 1 b Surprise......
Q:
a. Design the logic for a program that allows a user to enter 20 numbers, then displays all of the numbers, the largest number, and the smallest. b. Modify the program in Exercise 3a so that the user...
A:
a Flowchart Pseudocode start Declarations num index num largest num smallest num SIZE 20 num numbers......
Q:
Describe to what extent CII uses technology in its service design. Describe any additional areas where CII might substitute technology for people.
A:
CII uses technology to facilitate ordering shore excursions for ordering room service for providing......
Q:
Breathtakers, a health and fitness center, operates a morning fitness program for senior citizens. The program includes aerobic exercise, either swimming or step exercise, followed by a healthy...
A:
subject to......
Q:
Suppose an investor gave you $ 150,000 to start your business. You gave this investor 50 percent of your company for this investment. Your revenue year one was $479,600; your cost of goods sold was...
A:
To calculate the Return on Investment ROI for your investor you first need to deter......
Q:
In Year 3 Daniels, an individual, sold Section 1245 property for $21,000 that had an adjusted basis of $12,000, resulting in a $9,000 gain. The property had cost Daniels $20,000 when purchased in...
A:
In this scenario the gain on the sale of the Section 1245 property should be reported as a combinati......
Q:
In 2015, Bertha Jarow (head of household with three dependents) had a $28,000 loss from the sale of a personal residence. She also purchased from an individual inventor for $7,000 (and resold in two...
A:
Margret Jarow Ashland Oregon 97520 1120 West Street Hello Ms Jarow Regarding the Tax Effects of Selling Your Home and Capital Transactions for 2015 I......
Q:
How much is too much when considering the use of graphics in a business document?
A:
A document that is too graphic heavy confuses the reader because he......
Q:
1. In 2014, its first year of operations, Kimble Corp. has a net operating loss of $800,000 when the tax rate is 30%. In 2015, Kimble has a taxable income of $350,000 and the tax rate is still 30%....
A:
1 a Entries in 2014 to record the tax effects of the carryover loss To record the tax effects of the carryover loss in 2014 the following journal entr......
Q:
Cash budget Friendly Freddie's is a major, independently owned discount electronics and home appliance chain with seven stores located in a Midwestern metropolitan area.The rapid expansion has...
A:
To prepare Friendly Freddie s cash budget for the months of October November and December we need to......
Q:
I am astounded that we cannot find the cost records for the month of July 2021 said Greg Andrews, plant manager of Detroit Component Works (DCW). I have a division meeting to attend where I will be...
A:
3 Calculate the Assembly Department costs to account for in July of 2021 for Direct Materials and Conversion cost The first step is to determine the unit cost for work done on the 7 1 units prior to 7......
Q:
Suppose we have portfolio of two stocks. We assume that the risk free rate is 3%. Volatility Stock Stock X Stock Y a. Expected return C. 15% 7% 40% What is the minimum variance portfolio when Px.x =...
A:
To determine the minimum variance portfolio and the tangent portfolios we need to use portfolio theory and the concept of the efficient frontier The efficient frontier represents a set of portfolios t......
Q:
If there are some errors (grammatical or syntax or any ) Below are the slides of my presentation: Introduction E-COMMERCE > E-commerce stands for Electronic Commerce. It is the buying and selling of...
A:
Here are some suggested corrections and improvements to the content and grammar of your presentation......
Q:
The human brain and spinal cord are immersed in the cerebrospinal fluid. The fluid is normally continuous between the cranial and spinal cavities. It normally exerts a pressure of 100 to 200 mm of...
A:
a b c P Po pgh The gauge pressure is P Po pgh 1000 kg 9 8 m s 0 160 m 1 57 kPa 1 57 10......
Q:
Express mass density in kg/m3 and weight density in lb/ft3. 1. Find the mass density of a chunk of rock of mass 215 g that displaces a volume of 75.0 cm3 of water. 2. A block of wood is 55.9 in. x...
A:
1 D m m v 215g 75 0cm 3 x 100 cm 1m 3 x 1......
A First Look At Perturbation Theory 2nd Edition - ISBN: 0486315584 - Free Book