EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It
Question:
EzTech used the straight-line method to calculate depreciation on the warehouse and has no non-recaptured Section 1231 losses.
a. Compute EzTech€™s taxable income.
b. Re-compute taxable income assuming that EzTech used the land in its business instead of holding it for investment.
Transcribed Image Text:
Initial BasisC. Depr. Sale Price Machinery Office equipment Warehouse Investment securities Investment land S 97,500 50,000 163,500 72,700 350,000 $39,660 12,470 21,620 n/a n/a $ 70,000 57,500 125,000 83,100 328,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (14 reviews)
a EzTechs gains and losses from sales of business assets are computed and characterized as follows E...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
Question Posted:
Students also viewed these Business Law questions
-
Extronic, a calendar year, accrual Basis Corporation, reported a $41,900 liability for accrued 2014 state income tax on its December 31, 2014, balance sheet. Extronic made the following state income...
-
Croyden is a calendar year, accrual basis corporation. Mr. and Mrs. Croyden (cash basis taxpayers) are the sole corporate shareholders. Mr. Croyden is president and Mrs. Croyden is vice president of...
-
Western Corporation, a calendar year, accrual basis corporation, reported $500,000 of net income after tax on its financial statements prepared in accordance with GAAP. The corporations books and...
-
2. For every $1.00 spent on Advertising, the Industry generates $10.00 in Net Sales. You calculate Living Earth's Advertising relationship to Net Sales (show work) and report your comparison of...
-
A spring has a spring constant of 30 N/m. How much work is required to stretch the spring 2.0 cm from its equilibrium position?
-
Find the power of a test when the probability of the type II error is: a. 0.01 b. 0.05 c. 0.10
-
Financial Globalization. Explain the twin agency problems. How do the twin agency problems limit financial globalization?
-
Urban Auto Glass specializes in the repair and replacement of windshields for passenger vehicles. Variable and fixed costs related to installation activities for the most recent month (July) are...
-
3. Prime factorization (a) Find the prime factorization of each of these integers. Show all your steps. 1. 108 2. 1188 3. 10! (b) Consider two positive integers a = 22 x 32 x 52 x 76 and b = 24 x 54...
-
The Senior Seminar at Allegheny State requires students to complete a process improvement project with local industry. Jim Davis and Leanna Hearn have been assigned to Wiley Construction. Here is...
-
This year, Sigma Inc. generated $612,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months. a....
-
Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 2012. a. In 2015, Corporation Q sold only one asset and recognized a...
-
In a discussion of corporate income, a user of financial statements makes the following allegation: One of the real problems with the income is that you never really know what it is. The only way you...
-
An owner of a growing business hires you as a consultant. He is concerned about rising pay- roll costs, and also concerned about payroll fraud. Currently, his payroll clerk collects time sheets and...
-
An internal auditor's statement, "I personally counted the cash," is an example of which kind of evidence? a. Circumstantial. b. Direct. c. Primary. d. Secondary. e. Corroborative.
-
To audit operations for efficiency, an internal auditor should have available: a. A procedures manual. b. Performance standards. c. Volume statistics. d. Flowcharts. e. An organization chart.
-
In testing the internal controls over accounts receivable, the internal auditor should determine whether: a. Noncash credits are properly authorized. b. The general ledger and subsidiary ledger aid...
-
Verification does not include: a. Corroboration. b. Confirmation. c. Comparison. d. Connotation. e. All of the above.
-
A 1.2 g pebble is stuck in a tread of a 0.76-m-diameter auto- mobile tire, held in place by static friction that can be at most 3.6 N. The car starts from rest and gradually accelerates on a straight...
-
For each equation, (a) Write it in slope-intercept form (b) Give the slope of the line (c) Give the y-intercept (d) Graph the line. 7x - 3y = 3
-
Discuss the creation and use of multidimensional arrays.
-
Dusan is a member of the Tonda LLC, and all members have equal interests in capital and profits. The LLC has made an optional adjustment-to-basis election. Dusans interest is sold to Adele for...
-
Berdine has a basis of $32,000 in her partnership interest and receives land with an adjusted basis to the partnership of $78,000 in termination of her interest. (The partnership has no hot assets.)...
-
Berdine has a basis of $32,000 in her partnership interest and receives land with an adjusted basis to the partnership of $78,000 in termination of her interest. (The partnership has no hot assets.)...
-
Please help me to solve these questions. Thank you so much! 1. Which of the following is not correct relating to financial statement audit? A) Financial statement audits of today place more emphasis...
-
Wham Products, a maker of specialty products, is currently manufacturing and selling a product called Gory Goo. A discount department store, J-Mart, has made a one-time offer to purchase 58,000 units...
-
Lunar Entertainment is a provider of cable, Internet, and on-demand video services. Lunar currently sends monthly bills to its customers via the postal service. Because of a concern for the...
Study smarter with the SolutionInn App