Question
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2020, 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 2020, she sells the following long-term assets used in her business:
| Asset | Sales Price | Cost | Accumulated Depreciation |
| Building | $230,400 | $200,400 | $52,400 |
| Equipment | 80,400 | 148,400 | 23,400 |
|
| |||
Lily's taxable income before these transactions is $190,900.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.)
| Description | Amount |
| Taxable income | ? |
| Tax liability | ? |
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Financial Accounting For Decision Makers
Authors: Dr Peter Atrill, Eddie Mclaney, Sin Autor
5th Edition
1405888210, 9781405888219
