Question
During the current year, Star Corporation sold machinery for $470,000 (adjusted basis of $280,000). The machinery was purchased a few years ago for $760,000 and
During the current year, Star Corporation sold machinery for $470,000 (adjusted basis of $280,000). The machinery was purchased a few years ago for $760,000 and $480,000 in MACRS deductions have been claimed. ADS depreciation would have been $310,000. As a result of the sale, the adjustment to taxable income needed to determine current E & P is:
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None of these
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Add $145,000.
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Subtract $170,000.
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No adjustment is required.
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
