Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer the following: Select Properties Sold that are Section 1245: There are mulitple answers please select all the correct ones Wine Collection Marketable Securities

image text in transcribed

Please answer the following:

Select Properties Sold that are Section 1245: There are mulitple answers please select all the correct ones

  1. Wine Collection
  2. Marketable Securities
  3. Office Tables
  4. Business Equipment
  5. Land of Investment
  6. Truck
  7. Office Chairs
  8. Storage Building
Dean and Ellen Price are married and have a manufacturing business. They bought a piece of business equipment (7-year personal property) on 4/1/2018 for $50,000. Use half-year convention to calculate the MACRS depreciation deduction on the equipment for 2018 and 2019 They also has a pick-up truck used for business (5-year recovery period) acquired on 8/23/2018 for $25,000. On 11/15/2019, he sold the pick-up truck for $24,000. Use the half-year convention to calculate the MACRS depreciation on the truck for 2018 and 2019. On 10/26/2019 Dean sold his old storage building used for his business for $220,000. They purchased the building in 2001 for $100,000. Total depreciation (accumulated depreciation) taken on the building is $20,000. His 2019 Business income and expenditures (Schedule -C): Sales $657,500 Cost of goods sold Other business expenses (incl. deprecation taken on the storage building) $315,000 $140,000 In 2019 Dean also sold various assets. The information about the selling price and depreciation of the property is listed below. In 2019 Dean sold his wine collection for $9,000, which is bought two years ago for $8,000. They also has a short-term capital loss carryover of $10,000 from 2009

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

Financial And Managerial Accounting

Authors: Susan F. Haka ,Joseph V. Carcello ,Jan R. Williams

18th Edition

1259922189, 978-1259922183

More Books

Students also viewed these Accounting questions

Question

Explain the forces that influence how people handle conflict

Answered: 1 week ago