Homework 10 - Intro The two worksheets that follow provide pro forma workpapers to help you solve the assigned homework problems They organize your

Homework 10 - Intro The two worksheets that follow provide...

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Unformatted text preview: Intro The two worksheets that follow provide pro forma workpapers to help you solve the assigned homework problems. They organize your solution in a manner that is consistent with the analytical methods that we discuss in class and allow you to focus on the technical issues, rather than workpaper techniques and computer skills. However, you should continuously analyze the organization of the solution and the answers analyze the the that you receive, as you work the problems. That is the only way that you will learn the skills way that will the and techniques that you will need for your long-term success. Click on the appropriate tab below to move to the worksheet for the homework problem that you want to work on. Once you have completed the assignment, save the file to your computer, then submit it in the manner prescribed in the course syllabus. NOTE: Cells with red dots in them contain notes that provide additional information about the cell contents. Double click on those cells to read the notes. Also, you need enter information only in the cells that are highlighted in bright yellow. Page 1 7-35 Problem 7-35 Capital Transactions Salary § 1244 ordinary loss Capital Transactions Short-term capital gain on § 1244 stock Short-term capital loss (nonbusiness bad debt) Net Short-Term Capital Gain Net Long-Term Capital Loss on 1244 stock Net Capital Loss (long-term) Adjusted Gross Income $20,000 ($19,000) $1,000 ($105,000) ($104,000) Check Figure AGI $120,000 ($100,000) ($3,000) $17,000 $17,000 Page 2 7-38 Problem 7-38 Building Equipment Amount of Loss Adjusted Basis or Decrease in FMV $(90,000.0) $(40,000.0) Insurance Reimbursement $70,000.0 $25,000.0 Net Loss $(20,000.0) $(15,000.0) Barn Total Loss $(50,000.0) $(180,000.0) $25,000.0 $120,000.0 $(25,000.0) $(60,000.0) Check Figure $60,000 If loss deducted in… 2011 2012 Before Deduction Taxable Income Tax Liability (per tax rate schedules) $174,000 $75,808 After Deduction Taxable Income Tax Liability (per tax rate schedules) $174,000 $75,808 Tax Benefit Per Year Savings Between Two Years Check Figure $98,193 $250,000 $131,165 Use the tax rate schedules in the book to determine the tax $178,216 benefit: married filing $77,635 jointly. $100,581 $2,388 $2,388 Page 3 ...
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  • Spring '13
  • WILSON
  • Accounting, Taxation in the United States, Double click, short-term capital gain

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