Question
Greenville Corporation owns and operates a clothing manufacturing company. The corporation reported the following property transactions during 2020: 1). Sale of real estate (unimproved) that
Greenville Corporation owns and operates a clothing manufacturing company. The corporation reported the following property transactions during 2020:
1). Sale of real estate (unimproved) that has been used as an employee parking lot for $210,000 in April 2020. The lot was purchased in 1999 for $120,000.
2). Sale of office furniture used in the business for $23,000 in December 2020. The furniture was purchased in February 2020 for $25,000. Depreciation of $7,000 has been claimed on the furniture.
3). Sale of 2,500 shares of Biotech Corporation common stock for $30 per share in October 2020. The shares were purchased in January 2020 for $24 per share and have been held for investment purposes. This sale transaction was reported to Greenville on Form 1099-B showing the stock basis was reported to the IRS.
4). Sale of an office building for $2,800,000 in May 2020. The building was purchased in 2001 for $3,600,000. Depreciation of $1,950,000 has been claimed on the building.
5). Sale of factory equipment for $425,000 in July 2020. The equipment was purchased in 2016 for $375,000. $240,000 in tax depreciation has been claimed on the machine.
6). Sale of 4,000 shares of Windstar, Inc., common stock for $10 per share in June 2020. The 4,000 shares were purchased in May 2018, for $25 per share and have been held for investment purposes. This sale transaction was reported to Greenville on Form 1099-B showing the stock basis was reported to the IRS.
7). Sale of a factory building in March 2020 for $4,500,000. The building was purchased in 2017 for $3,250,000. $800,000 of depreciation has been claimed on the building.
8). Sale of a factory machine for $1,075,000 in August 2020. The machine was purchased in January 2018 for $4,900,000. $1,400,000 in tax depreciation has been claimed on the building.
9). Sale of copier machine for $2,000 in November 2020. The copier was purchased in March 2019 for $6,000 and, for tax purposes, was fully depreciated in 2019 using Section 179.
Greenville Corporation also has a $175,000 capital loss carry forward available from 2016.The company reported the following net Section 1231 gains and losses in previous years:
2014 $150,000 2017 ($280,000)
2015 ($320,000) 2018 ($270,000)
2016 $450,000 2019 $220,000
Required:
Using the above information, complete Form 4797, Form 1120 Schedule D, Form 8949, and page 1 of Form 1120 for Greenville Corporation. Bring the applicable numbers from Schedule D and Form 4797 to the appropriate lines on page 1 of Form 1120. Greenville’s employer identification number is 39-654321.
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