Using your text, complete the following. In these problems, apply your knowledge of the rules and laws associated with the sale of ordinary assets, capital assets, and business assets. ● Problem 41, on page 7-47. ● Problem 43, on page 7-48. ● Problem 46, on page 7-49. ● Problem 51, on page 7-52. ● Problem 56, on page 7-53. 41.Umair sold some equipment he used in his business on August 29, 2019, that was originally purchased for $65,000 on November 21, 2018. The equipment was depreciated using the 7-year MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer. Assume Umair sold the equipment for $45,000: (1) What is the amount of realized gain or loss on the sale of the equipment? (2) Is the nature of the gain or loss considered ordinary or long-term? 43.Haneen has taxable income of $115,000 without consideration of capital gain or loss transactions. She has a short-term capital gain of $18,000, a long-term capital loss of $10,000, and a short-term capital gain of $4,000. Assume no gains or losses are from collectibles or unrecaptured § 1250 property and Haneen is in the 24% tax bracket. a.What is the total short-term gain or loss? b.What is the total long-term gain or loss? c.What is the carryover amount? d.Is the gain or loss after netting taxed at the ordinary or capital rate? 46. Jake purchased a $235,000 crane for his construction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume Jake is in the 35% tax rate bracket. a.On what form would the gain or loss originally be reported? b. What is the amount of gain or loss on the sale? c. What amount of the gain or loss is subject to ordinary tax rates? 51.In 2019 Rosalva sold stock considered short-term for a gain of $1,240 and stock considered long-term for a loss of $2,143. She also had a $3,000 short-term loss carryover from 2018 and a $1,530 long-term loss carryover from 2018. a. What amount will be shown as a short-term gain (loss) for 2019? _________ b. What amount will be shown as a long-term gain (loss) for 2019? _________ c. How much of the loss is deductible in 2019? _________ d. What is the amount of long-term carryover to 2020? _________ 56. Ramon received a gift of stock from his uncle. The basis of the stock to his uncle was $25,000, and it had an FMV of $18,000 at the date of the gift. The donor held the property for more than one year. Complete the following chart under the independent situations shown:
Using your text, complete the following. In these problems, apply your knowledge of the rules and laws associated with the sale of ordinary assets, capital assets, and business assets. ● Problem 41, on page 7-47. ● Problem 43, on page 7-48. ● Problem 46, on page 7-49. ● Problem 51, on page 7-52. ● Problem 56, on page 7-53. 41.Umair sold some equipment he used in his business on August 29, 2019, that was originally purchased for $65,000 on November 21, 2018. The equipment was depreciated using the 7-year MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer. Assume Umair sold the equipment for $45,000: (1) What is the amount of realized gain or loss on the sale of the equipment? (2) Is the nature of the gain or loss considered ordinary or long-term? 43.Haneen has taxable income of $115,000 without consideration of capital gain or loss transactions. She has a short-term capital gain of $18,000, a long-term capital loss of $10,000, and a short-term capital gain of $4,000. Assume no gains or losses are from collectibles or unrecaptured § 1250 property and Haneen is in the 24% tax bracket. a.What is the total short-term gain or loss? b.What is the total long-term gain or loss? c.What is the carryover amount? d.Is the gain or loss after netting taxed at the ordinary or capital rate? 46. Jake purchased a $235,000 crane for his construction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume Jake is in the 35% tax rate bracket. a.On what form would the gain or loss originally be reported? b. What is the amount of gain or loss on the sale? c. What amount of the gain or loss is subject to ordinary tax rates? 51.In 2019 Rosalva sold stock considered short-term for a gain of $1,240 and stock considered long-term for a loss of $2,143. She also had a $3,000 short-term loss carryover from 2018 and a $1,530 long-term loss carryover from 2018. a. What amount will be shown as a short-term gain (loss) for 2019? _________ b. What amount will be shown as a long-term gain (loss) for 2019? _________ c. How much of the loss is deductible in 2019? _________ d. What is the amount of long-term carryover to 2020? _________ 56. Ramon received a gift of stock from his uncle. The basis of the stock to his uncle was $25,000, and it had an FMV of $18,000 at the date of the gift. The donor held the property for more than one year. Complete the following chart under the independent situations shown:. Using your text, complete the following. In these problems, apply your knowledge of the rules and laws associated with the sale of ordinary assets, capital assets, and business assets.
- Problem 41, on page 7-47.
- Problem 43, on page 7-48.
- Problem 46, on page 7-49.
- Problem 51, on page 7-52.
- Problem 56, on page 7-53.
41.Umair sold some equipment he used in his business on August 29, 2019, that was originally purchased for $65,000 on November 21, 2018. The equipment was depreciated using the 7-year MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer.
Assume Umair sold the equipment for $45,000:
(1) What is the amount of realized gain or loss on the sale of the equipment?
(2) Is the nature of the gain or loss considered ordinary or long-term?
43.Haneen has taxable income of $115,000 without consideration of capital gain or loss transactions. She has a short-term capital gain of $18,000, a long-term capital loss of $10,000, and a short-term capital gain of $4,000. Assume no gains or losses are from collectibles or unrecaptured § 1250 property and Haneen is in the 24% tax bracket.
a.What is the total short-term gain or loss?
b.What is the total long-term gain or loss?
c.What is the carryover amount?
d.Is the gain or loss after netting taxed at the ordinary or capital rate?
- Jake purchased a $235,000 crane for his construction business. He sold the crane for $175,000 after taking $115,000 of depreciation. Assume Jake is in the 35% tax rate bracket.
a.On what form would the gain or loss originally be reported?
- What is the amount of gain or loss on the sale?
- What amount of the gain or loss is subject to ordinary tax rates?
51.In 2019 Rosalva sold stock considered short-term for a gain of $1,240 and stock considered long-term for a loss of $2,143. She also had a $3,000 short-term loss carryover from 2018 and a $1,530 long-term loss carryover from 2018.
- What amount will be shown as a short-term gain (loss) for 2019? _________
- What amount will be shown as a long-term gain (loss) for 2019? _________
- How much of the loss is deductible in 2019? _________
- What is the amount of long-term carryover to 2020? _________
- Ramon received a gift of stock from his uncle. The basis of the stock to his uncle was $25,000, and it had an FMV of $18,000 at the date of the gift. The donor held the property for more than one year. Complete the following chart under the independent situations shown:
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