Question
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022, 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 2022, she sells the following long-term assets used in her business:
| Asset | Sales Price | Cost | Accumulated Depreciation |
|---|---|---|---|
| Building | $ 230,000 | $ 200,000 | $ 52,000 |
| Equipment | 80,000 | 148,000 | 23,000 |
Lily's taxable income before these transactions is $190,500. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
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Emerging Market Finance New Challenges And Opportunities
Authors: Bang Nam Jeon, Ji Wu
1st Edition
1839820594, 978-1839820595
