Book gain on equipment sale 23000 tax gain on

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Business Law Today, Standard: Text & Summarized Cases
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Chapter 26 / Exercise 1
Business Law Today, Standard: Text & Summarized Cases
Jentz/Miller
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7. St. George Inc. reported $711,800 net income before tax on this year’s financial statement prepared in accordance with GAAP. The corporation’s records reveal the following information:Four years ago, St. George realized a $283,400 gain on sale of investment property and elected the installment sale method to report the sale for tax purposes. Its gross profit percentage is 50.12, and it collected $62,000 principal and $14,680 interest on the installment note this year.Five years ago, St. George purchased investment property for $465,000 cash from an LLC. Because St. George and the LLC were related parties, the LLC’s $12,700 realized loss on sale was disallowed for tax purposes. This year, St. George sold the property to an unrelated purchaser for $500,000.• A flood destroyed several antique carpets that decorated the floors of corporate headquarters. Unfortunately, St. George’s property insurance does not cover damage caused by rising water, so the loss was uninsured. The carpets’ adjusted book basis was $36,000, and their adjusted tax basis was $28,400.Compute St. George’s taxable income. (Round your intermediate calculations to the nearest whole dollar amount.)
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Business Law Today, Standard: Text & Summarized Cases
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Chapter 26 / Exercise 1
Business Law Today, Standard: Text & Summarized Cases
Jentz/Miller
Expert Verified
Chap 10:1. For 2017, Ms. Deming earned wages totaling $225,000.a.Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming is single.b.Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming files a joint return with her husband who earned $100,000 of wages for 2017.Explanation
2. Mrs. Singer owns a profitable sole proprietorship. For each of the following cases, use a Schedule SE, Form 1040, to compute her 2016 self-employment tax and her income tax deduction for such tax.a.Compute 2016 self-employment tax and the income tax deduction for such tax if Mrs. Singer’s net profitfrom Schedule C was $51,458. She had no other earned income.b.Compute 2016 self-employment tax and the income tax deduction for such tax if Mrs. Singer’s net profitfrom Schedule C was $51,458, and she received a $80,000 salary from an employer.c.Compute 2016 self-employment tax and the income tax deduction for such tax if Mrs. Singer’s net profitfrom Schedule C was $51,458, and she received a $127,000 salary from an employer.Explanation
b.

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