TAX ACCOUNTING QUESTIONS:

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Hizbro Corp, a US Corp, earns Danish income of $125,000 and pay $30,000 in Danish taxes. It's combined Danish and US Income is $700,000. If the US tax liability before the foreign tax credit is $147,000, what is the allowable foreign tax credit? 0 147,000 30,000 26,250 Gruden Corp sells a builidng for $1,518,000 in the tax year. They had purchased it a few years before for $1,400,000. The buildings adjusted basis at the time of sale was $725,000. What is the gain/loss on the sale as well as the nature? 118,00025% rate capital gain 118,00025% rate capital gain; 675,000 long-term capital gain 675,00025% rate capital gain; 118,000 long-term capital gain 68,00025% rate capital gain; 725,000 long-term capital gain Gruden Corp sells a piece of equipment for $265,000 in the tax year. They had purchased it a f ew years before for $800,000. The equipment's adjusted basis at the time of sale was $200,000. What is the gain/loss on the sale as well as the nature? 265,000 ordinary gain 65,000 capital gain 65,000 ordinary gain 0 gain