Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business:

image text in transcribed
image text in transcribed
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2019, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $231,000 81,000 Accumulated Cost Depreciation $201.000 $53,000 149,000 24,000 Lily's taxable income before these transactions is $191,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round Intermediate calculations. Round your answers to the nearest whole dollar amount.) Amount Description Taxable income Tax liability 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 $ 39,475 $ 9,700 $ 39,475 $ 84,200 $ 84,200 10% of taxable income $970 plus 12% of the excess over $9,700 $4,543 plus 22% of the excess over $39,475 $14,382.50 plus 24% of the excess over $84,200 $32,748.50 plus 32% of the excess over $160,725 $46,628.50 plus 35% of the excess over $204,100 $153,798.50 plus 37% of the excess over $510,300 $160,725 $204,100 $510,300 $160,725 $204,100 $510,300

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

Construction Guide Accounting And Knowledge Based Audits

Authors: CPA Eric P. Wallace

1st Edition

0808020870, 978-0808020875

More Books

Students also viewed these Accounting questions

Question

6. (Who, whom) ________ are you talking to?

Answered: 1 week ago