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Renton Technical College *
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179
Subject
Accounting
Date
May 7, 2024
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On August 1 of year 0O, Dirksen purchased a machine for $29,500 to use in its business. On December 4 of year O, Dirksen sold the machine for $24,500. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Round other intermediate computations to the nearest whole dollar amount. Leave no answers blank. Enter zero if applicable. J rksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 instead? @ Answer is complete and correct. i Description Amount »tal Gain or (Loss) Recognized $ 2828@ haracter of Recognized Gain or s): Ordinarv Gain or (Loss) $ 2.828 @
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Related Questions
[The following Information applies to the questions displayed below.]
On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen
sold the machine for $18,000. Use MACRS Table.
Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no
answer blank. Enter zero If applicable.
b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or
loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 Instead?
Note: Round other Intermediate computations to the nearest whole dollar amount.
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
$1231 gain or (loss)
Amount
arrow_forward
On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen
sold the machine for $18,000. Use MACRS Table.
Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no
answer blank. Enter zero if applicable.
a. What are the amount and character of the gain or loss Dirksen will recognize on the sale?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
$
Amount
0
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Required Information
[The following information applies to the questions displayed below.]
On August 1 of year 0. Dirksen purchased a machine for $42,500 to use in its business. On December 4 of year 0, Dirksen
sold the machine for $35,000. Use MACRS Table. (Loss amounts should be Indicated by a minus sign. Do not round
percentages used for calculations. Round other Intermediate computations to the nearest whole dollar amount. Leave
no answer blank. Enter zero If applicable.)
b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or
loss Dirksen will recognize on the sale of the machine is sold on January 15 of year 1 Instead?
Description
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
§1231 gain/(loss)
S
Amount
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Required information.
Problem 11-42 (LO 11-3, LO 11-4) (Static)
[The following information applies to the questions displayed below.]
On August 1 of year O, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of
year 0, Dirksen sold the machine for $18,000. Use MACRS Table.
Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for
calculations. Leave no answers blank. Enter zero if applicable.
Problem 11-42 Part-a (Static)
a. What are the amount and character of the gain or loss Dirksen will recognize on the sale?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
$1231 gain or (loss)
Amount
arrow_forward
Buster's draft financial statements for the year to 31 October 20X5 report a loss of $1,486. When he
prepared the financial statements, Buster did not include an accrual of $1,625 and a prepayment of
$834.
What is Buster's profit or loss for the year to 31 October 20X5 following the inclusion of the accrual and
prepayment?
arrow_forward
Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the
warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation
expense against the building.
Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero
if applicable. Round your final answers to the nearest whole dollar amount.
Required:
a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount
and character of Hauswirth's recognized gain or loss on the sale.
b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land
with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized
gain or loss, deferred gain or loss, and basis in the new land.
c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 note receivable
that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in
year O and in year 1.
Complete this…
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Required information
[The following information applies to the questions displayed below.]
In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the
machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
c. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to
$16,500 (before the $1231 netting process, if applicable)?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Los)
$1231 gain/(loss)
arrow_forward
In year 0, Longworth Partnership purchased a machine for $57,250 to use in its business. In year 3, Longworth
sold the machine for $44,300. Between the date of the purchase and the date of the sale, Longworth depreciated
the machine by $24,900.
Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.
a. What are the amount and character of the gain or loss Longworth will recognize on the sale?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
$1231 gain or (loss)
Amount
arrow_forward
In year 0, Longworth Partnership purchased a machine for $56,000 to use in its business. In year 3, Longworth sold the
machine for $36,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$29,800.
Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to
$61,250?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss)
Ordinary Gain or (Loss)
$1231 gain or (loss)
Amount
arrow_forward
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000,
and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leav
no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.)
Required:
a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's
recognized gain or loss on the sale.
b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000,
compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.
c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute th
amount and character of Hauswirth's gain or loss in year O and in year 1.
Complete this question by…
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In year 0, Longworth Partnership purchased a machine for $53,000 to use in its business. In year 3, Longworth sold the machine for $42,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,800.
Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.
Problem 3-41 Part-a (Algo)
a. What are the amount and character of the gain or loss Longworth will recognize on the sale?
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,750?
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S
!
Required information
[The following information applies to the questions displayed below.]
In year O, Longworth Partnership purchased a machine for $50,500 to use in its business. In year 3, Longworth sold the
machine for $35,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$26,600.
Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.
c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to
$16,100?
Description
Total Gain or (Loss) Recognized
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
Amount
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At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the year: Computers
Office desks Machinery Office building Asset Asset Assuming Anna does not elect §179 expensing and elects not to use bonus
depreciation, answer the following questions: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Note: Do not round intermediate
calculations. Round your final answers to the nearest whole dollar amount. a. What is Anna's year 1 cost recovery for each asset? Year 1
Cost Recovery Computers Office desks Date Acquired 1/30 2/15 7/25 8/13 $ $ $ $ $ 56,000 X 4,573 10,718 Machinery Office building
Total 75,131 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. Cost
Basis $28,000 $ 32,000 $75,000 $ 400,000 3,840 x
At the beginning of the year, Anna began a calendar-year business and placed in service the following assets during the
year:
Computers
Office desks…
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Novak Manufacturing has old equipment that cost $51,000. The equipment has accumulated depreciation of $27,900. Novak has decided to sell the equipment. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
(a)
What entry would Novak make to record the sale of the equipment for $26,000 cash?
(b)
What entry would Novak make to record the sale of the equipment for $15,000 cash?
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In year O, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3, Longworth sold the
machine for $37,900. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$25,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to
$68,250?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
$1231 gain/(loss)
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!
Required information
[The following information applies to the questions displayed below.]
In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the
machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to
$67,500?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
$1231 gain/(loss)
arrow_forward
In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3, Longworth sold the machine for $38,600. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $28,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What is the amount and character of the gain or loss Longworth will recognize on the sale?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
§1231 gain/(loss)
arrow_forward
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years
ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should
be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the
nearest whole dollar amount.)
Required:
a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of
Hauswirth's recognized gain or loss on the sale.
b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market
value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss,
and basis in the new land.
c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in
year 1, compute the amount and character of Hauswirth's gain or loss in year O and in year 1.
arrow_forward
In year 0, Longworth Partnership purchased a machine for $44,500 to use in its business. In year 3, Longworth sold the machine for $38,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $31,100. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What are the amount and character of the gain or loss Longworth will recognize on the sale?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
§1231 gain/(loss)
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $68,000?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
§1231 gain/(loss)
c. What are the amount and character of the gain or loss Longworth will recognize on the sale…
arrow_forward
In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a partnership?
Total Gain/Loss Recognized
Character of Recognized Gain/Loss
Ordinary Gain/Loss
1231 gain/Loss
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In year 0, Longworth Partnership purchased a machine for $54,500 to use in its business. In year 3, Longworth sold the machine for $36,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $26,700. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What is the amount and character of the gain or loss Longworth will recognize on the sale?
b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $65,500?
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On December 31, 2020, Riverbed Inc. has a machine with a book value of $1,410,000. The original cost and related accumulated
depreciation at this date are as follows.
Machine
$1,950,000
Less: Accumulated depreciation
540,000
Book value
$1,410,000
Depreciation is computed at $90,000 per year on a straight-line basis.
Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the
transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
(a)
Your answer is correct.
A fire completely destroys the machine on August 31, 2021. An insurance settlement of $645,000 was received for this casualty.
Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and…
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In year 0, Longworth Partnership purchased a machine for $58,250 to use in its business. In year 3, Longworth sold the
machine for $37,900. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by
$25,200. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to
$19,400?
Description
Amount
Total Gain/(Loss) Recognized
Character of Recognized Gain/(Loss):
Ordinary Gain/(Loss)
$1231 gain/(loss)
arrow_forward
Pharoah Company has delivery equipment that cost $47,800 and has been depreciated $25,000.
Record entries for the disposal under the following assumptions. (Credit account titles are automatically Indented when amount Is
Do not Indent manually. If no entry Is requlred, select "No Entry" for the account titles and enter O for the amounts.)
(a)
It was scrapped as having no value.
(b)
It was sold for $37,200.
(c)
It was sold for $19,900.
No. Account Titles and Explanation
Debit
Credit
(a)
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In year 0, Longworth Partnership purchased a machine for $57,500 to use in its business. In year 3, Longworth sold the machine for $38,800. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $27,300. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $70,000?
Please don't provide answer in image format thank you
arrow_forward
In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What is the amount and character of the gain or loss Longworth will recognize on the sale?
In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
a. What is the amount and character of the gain or loss Longworth will recognize on the sale?
In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In…
arrow_forward
Jebali Company reports gross income of $796,600 and other property-related expenses of $
517,790 and uses a depletion rate of 19%. Calculate Jebali's depletion allowance for the
current year. $fill in the blank 1 151, 354 is not correct
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3. In year 0, Canon purchased a machine to use in its business for $56,000. In year 3, Canon sold the machine for $42,000. Between the date of the purchase and the date of the sale, Canon depreciated the machine by $32,000. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)
b. What are the amount and character of the gain or loss Canon will recognize on the sale, assuming that it is a corporation?
Total Gain/Loss Recognized?
Ordinary Gain/Loss?
1231 Gain/Loss?
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On January 1, Masterson Supply purchased a small storage building for $20,400 to be used over a five-year period. The building has no residual value. Early in the fourth year, the storage building burned down.
Record the retirement of the remaining book value of the storage building. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
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Prepare journal entries to record these transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter 0 for the amounts.)
Blossom Company retires its delivery equipment, which cost $40,000. Accumulated depreciation is also $40,000 on this delivery equipment. No salvage value is received.
Assume the same information as in part (a), except that accumulated depreciation for the equipment is $36,000 instead of 40,000.
(a)
(b)
No. Account Titles and Explanation
Debit
Credit
(a)
(b)
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Related Questions
- [The following Information applies to the questions displayed below.] On August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero If applicable. b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale if the machine is sold on January 15 of year 1 Instead? Note: Round other Intermediate computations to the nearest whole dollar amount. Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amountarrow_forwardOn August 1 of year 0, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answer blank. Enter zero if applicable. a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) $ Amount 0arrow_forwardRequired Information [The following information applies to the questions displayed below.] On August 1 of year 0. Dirksen purchased a machine for $42,500 to use in its business. On December 4 of year 0, Dirksen sold the machine for $35,000. Use MACRS Table. (Loss amounts should be Indicated by a minus sign. Do not round percentages used for calculations. Round other Intermediate computations to the nearest whole dollar amount. Leave no answer blank. Enter zero If applicable.) b. Dirksen depreciated the machinery using MACRS (seven-year recovery period). What are the amount and character of the gain or loss Dirksen will recognize on the sale of the machine is sold on January 15 of year 1 Instead? Description Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) §1231 gain/(loss) S Amountarrow_forward
- Required information. Problem 11-42 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] On August 1 of year O, Dirksen purchased a machine for $20,000 to use in its business. On December 4 of year 0, Dirksen sold the machine for $18,000. Use MACRS Table. Note: Loss amounts should be indicated by a minus sign. Do not round percentages used for calculations. Leave no answers blank. Enter zero if applicable. Problem 11-42 Part-a (Static) a. What are the amount and character of the gain or loss Dirksen will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amountarrow_forwardBuster's draft financial statements for the year to 31 October 20X5 report a loss of $1,486. When he prepared the financial statements, Buster did not include an accrual of $1,625 and a prepayment of $834. What is Buster's profit or loss for the year to 31 October 20X5 following the inclusion of the accrual and prepayment?arrow_forwardHauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this…arrow_forward
- Required information [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $16,500 (before the $1231 netting process, if applicable)? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Los) $1231 gain/(loss)arrow_forwardIn year 0, Longworth Partnership purchased a machine for $57,250 to use in its business. In year 3, Longworth sold the machine for $44,300. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $24,900. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. a. What are the amount and character of the gain or loss Longworth will recognize on the sale? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amountarrow_forwardIn year 0, Longworth Partnership purchased a machine for $56,000 to use in its business. In year 3, Longworth sold the machine for $36,700. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $29,800. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,250? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss) Ordinary Gain or (Loss) $1231 gain or (loss) Amountarrow_forward
- Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leav no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year O and a $50,000 note receivable that is payable in year 1, compute th amount and character of Hauswirth's gain or loss in year O and in year 1. Complete this question by…arrow_forwardIn year 0, Longworth Partnership purchased a machine for $53,000 to use in its business. In year 3, Longworth sold the machine for $42,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,800. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 3-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,750?arrow_forwardS ! Required information [The following information applies to the questions displayed below.] In year O, Longworth Partnership purchased a machine for $50,500 to use in its business. In year 3, Longworth sold the machine for $35,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $26,600. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $16,100? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) Amountarrow_forward
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