Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LaSalle Inc. purchased a transmission belt equipment at a cost of $5630000 in 20X3. LaSalle Inc. took the following depreciation for tax deduction from 20X3

LaSalle Inc. purchased a transmission belt equipment at a cost of $5630000 in 20X3. LaSalle Inc. took the following depreciation for tax deduction from 20X3 to 20X6. 20X3: $804527 20X4: $1378787 20X5: $984687 20X6: $703187 In 20X7, LaSalle Inc. sold the equipment for $1870000, after taking another depreciation deduction of $251661 in 20X7. This was the only equipment sales transaction in the past five years. What is the taxable gain/loss from disposal of the equipment this year and is the type of gain/loss amount ordinary or capital? Question 32Answer a. 362849 ordinary income b. 111188 capital gain c. 362849 capital gain d. 111188 ordinary income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Information For Decisions

Authors: Robert w Ingram, Thomas L Albright

6th Edition

9780324313413, 324672705, 324313411, 978-0324672701

More Books

Students also viewed these Accounting questions

Question

LG2 Explain the initial public offering (IPO) process.

Answered: 1 week ago