Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has owned each of the assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated Depreciation $ 2,000 4,000 12,000 10,000 Original Gain/Loss $ (3,000) (2,000) 7,000 (1,000) Asset Cost Computers Machinery Furniture Building $ 6,000 10,000 20,000 100,000 Assuming Buckley's marginal ordinary income tax rate is 32 percent, answer the questions for the following alternative scenarios: a1. What is the amount and character of Buckley's gains or losses for the current year? 2. Calculate Buckley's tax liability or tax savings for the year. Complete this question by entering your answers in the tabs below.

Sergio, a sole proprietor, purchased a van for $35,000 to use exclusively in his delivery business. Six months later, he sold the van for $38,000. Sergio's $3,000 gain from the sale of this property should be reported as: O Gross receipts or sales on Schedule C, Part I. A gain from the sale or exchange of property used in a trade or business on Form 4797, Part I. An ordinary gain on Form 4797, Part II. O A gain from the disposition of property on Form 4797, Part III.

Brandon an individual, began business four years ago and has sold 1231 assets with $5,700 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year,Brandon sold the following business assets: Asset      original cost    accumulated deprection  gain/loss Machinery  $31,400            $8,400                           $10,700 Land              54,000                      0                             27,000 Building       118,000             34,000                          (10,000) Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and capital gains tax rates for reference.

A piece of land personally owned by John was transferred to the business for the use of its operation. The land was acquired 2 years ago with a cost of $50,000. The market value as of this date is $75,000.

Timmy paid $800,000 cash for all of the assets of Bob’s Chicken Fried Steak Shack, Inc. (Bob’s). Timmy did not buy the stock of Bob’s; rather he bought all of Bob’s assets from Bob’s.   Here is a list of the physical assets that Timmy got for his $800,000, showing the stand-alone FMV of each category:***   Land & Building, $350,000 Furniture & Equipment, $160,000 Inventory, $15,000   Bob’s latest property tax appraisal from Dallas County showed the land value at $150,000, the building at $100,000, the furniture and equipment at $75,000.   What is Timmy’s depreciable basis in the building? What is Timmy’s depreciable basis in the furniture and equipment? What amount will Timmy eventually record as COGS with respect to the purchased inventory? How much, if any, goodwill did Timmy purchase?   Address each item separately. (Each part must be correctly answered to earn a point for this item (3).)   *** These FMVs are as agreed and stated in the negotiated Purchase Agreement.

Convers Corporation (calendar year-end) acquired the following assets during the current tax year: (ignore §179 expense and bonus depreciation for this problem): (Use MACRS Table 1, Table 2 and Table 5.)   Asset Date Placed in Service Original Basis Machinery October 25 $ 78,000 Computer equipment February 3 18,000 Delivery truck* March 17 31,000 Furniture April 22 158,000 Total   $ 285,000 *The delivery truck is not a luxury automobile.   In addition to these assets, Convers installed new flooring (qualified improvement property) to its office building on May 12 at a cost of $380,000.   a. What is the allowable MACRS depreciation on Convers’s property in the current year assuming Convers does not elect §179 expense and elects out of bonus depreciation? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) b. What is the allowable MACRS depreciation on Convers's property in the current year assuming Convers does not elect out of…

Lowes Corporation sold its storage building for $86,000 cash. Lowes originally purchased the building for $200,000, and depreciation through the date of sale totaled $120,000. Required:Prepare the journal entry to record the sale of this building. (A separate calculation of any gain or loss is recommended.)

John’s uncle donated a truck to his company, John’s Corporation. The truck had an original cost of $95,000, a book value of $40,000, and a fair value of $55,000. The journal entry by John’s Corporation to record this donated asset will include a   a. ​debit Truck for $60,000 and credit Gain for $20,000.   b. ​debit Truck for $55,000 and credit Gain for $55,000.   c. ​debit Truck for $95,000 and credit Gain for $95,000.   d. ​debit Truck for $60,000 and credit Gain for $60,000.

7. Gibby sold 4-year-old business machinery for $100,000.The machinery had an original cost of $ 80,500. Gibby claimed$ 12,500 in depreciation through the date of sale. The only other§ 1231 transactions H has had were in the two prior years. Hehad a §1231 gain of $3,500 two years ago and a §1231 loss of$12,000 last year. How are Gibby’s gains for the current yeartreated?a. $12,500 ordinary gain; $19,500 long-term capital gainb. $21,000 ordinary gain; $11,000 long-term capital gainc. $24,500 ordinary gain; $7,500 long-term capital gaind. $32,000 ordinary gaine. $32,000 long term capital gain

Brandon, an individual, began business four years ago and has sold §1231 assets with $5,550 of losses within the last five years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets:  Asset Original Cost Accumulated Depreciation Gain/Loss Machinery $ 31,100 $ 8,100 $ 10,550   Land   51,000   0   25,500   Building   112,000   31,000   (16,000 )   Assuming Brandon's marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon's tax liability? Use dividends and capital gains tax rates for reference.