Question
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business:
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business:
Asset Sales Price Cost Accumulated Depreciation
Building $231,800 $201,800 $53,800
Equipment $81,800 $149,800 $24,800
Lily's taxable income before these transactions is $162,300.
What are Lily's taxable income and tax liability for the year?
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Rehabilitation Tax Credit IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304114686, 978-1304114686
