Question
Janeway Corporation has ordinary taxable income of $127,000 in 2018 before consideration of any of the following property transactions. It sold two blocks of stocks
Janeway Corporation has ordinary taxable income of $127,000 in 2018 before consideration of any of the following property transactions. It sold two blocks of stocks held for investment: one yielded a short-term capital gain of $8,000 and the other a long-term capital loss of $14,000. In addition, it sold four pieces of machinery used for three years for $30,000. The machines had cost $50,000 originally and had $35,000 of depreciation deductions taken. They also sold a building for $400,000 that they had purchased in 2000 for $390,000. The depreciation deductions up to the date of sale were $89,000. Determine the amount and type of the net gains and losses from the property transactions and Janeway Corporations taxable income for 2018.
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