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I need to fill out the spreadsheet based on the following information: Please help. Where the adjustments go has been given, I am just unsure
I need to fill out the spreadsheet based on the following information:
Please help. Where the adjustments go has been given, I am just unsure of the amounts...
3. The client depends on you, the CPA, to provide journal entries for activity in fixed assets. While discussing fixed assets, the client divulges that he got a great deal to upgrade his laser dermatology equipment. Ultimately, you find out that S569,888 of new equipment was purchased and placed in service on 6/18/2014. 4. Furthermore, and much after the fact, you discover that old medical equipment was sold to an unrelated party for $75,000 cash. The original cost of the equipment was $300,000 and it was fully depreciated (no Sec. 179). The cash was deposited in one of the shareholder's personal accounts. a. Provide a journal entry to calculate the gain on sale and adjust the fixed asset and accumulated depreciation accounts. b. What is the nature of this gain c. Could the Dr. have structured this sale in a different way to avoid taxable income? How? 5. The client depends on his accountant to provide a journal entry for the annual depreciation expense. They have adopted a policy of treating book depreciation equal to tax depreciation. Depreciation expense for the year will include: a. Depreciation on assets placed in service prior to 2014 is: $86,769 b. Maximize Sec. 179 expense on assets placed in service in 2014 c. Take Sec. 168(k) 50% Bonus on new equipment if applicableStep by Step Solution
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