Question
You paid a contractor $2,000 to cut standing timber held for business use for over 1 year into logs and sold the cut logs to
You paid a contractor $2,000 to cut standing timber held for business use for over 1 year into logs and sold the cut logs to a mill for $33,000. The fair market value of the standing timber was $26,000 on January 1 and your basis in it was $5,000. The capital gain rate is 15% and the ordinary income rate is 40%. Calculate the taxes.
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428858, 133428850, 133428702, 978-0133428704
