Question
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business:
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business:
| Asset | Sales Price | Cost | Accumulated Depreciation |
| Building | $ 225,000 | $200,000 | $52,000 |
| Equipment | 80,000 | 148,000 | 23,000 |
Lilys taxable income before these transactions is $160,500. What is Lilys tax liability for the year?
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The Only Tax Audit Guide Youll Ever Need
Authors: Janet M. Sydlaske, Richard K. Millcroft
1st Edition
0471510769, 978-0471510765
