Conrad Smith, a business executive, is an avid collector of vintage comic books. In February, he sold a 1938 Superman comic for $3,700 that he had purchased six years ago for $625. In December, Conrad sold a 1950 Donald Duck comic for $575 that he had purchased two years ago for $900. What is the effect of these two sales on Conrad's AGI?
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- A gentleman bought a limited edition Wolverine figurine in 1974 for $0.15. In 2012, 38 years later, he sold it for $36,900. What return did he earn per year over those 38 years?On Robin’s birthday, his grandmother gave him a ring that was worth $6,000 at the time of the gift. Robin’s grandmother had purchased the ring for $5,400. What is Robin’s basis in the ring if he sells it for $7,000? What if he sells it for $5,000? What if he sells it for $5,800? fill in the blank regardless of sales priceLauren purchased a $50,000 T-bill for $46,919. A few months later, Lauren sold the T-bill for $48,453. What was Lauren's return on the T-bill? (Round to two decimal places.)
- Mysty offered to sell her car to Tim for $15 000. Tim faxed a letter to her that said, "Consider it sold. I'll bring the money to you next Monday when I pick up the vehicle. Of course, for that price, I'll want you to install a new stereo in it." Tim did not hear anything more from Mysty, but he arrived at her door the following Monday with $15 000 in cash. He was delighted to find that a new stereo had been installed in the car, but disappointed when Mysty refused to accept his money or hand over the vehicle.Mysty is required to do so because there was a valid offer and acceptance. – Is this true or false?Very briefly, explain why this is true/falseIn 2018 Giles inherited a storefront from his uncle and so he left his job as a school librarian (which paid $50,000 per year) to open a novelty shop called the Magic Box. Giles was able to make an assortment of trinkets using $20,000 worth of materials that he sold for a total of $60,000. In addition, he purchased another $170,000 worth of goods and resold them for $190,000. He pays $5,000 per year for electricity. In order to decorate his shop, he purchased $2,000 worth of memorabilia to hang on his walls using a loan from the bank that charges 10% interest. At the end of the year, he sold off the same memorabilia to another store for $1,000. While he knows he could have rented out his inherited storefront to Jamba Juice for $20,000 per year, he chose not to. Because of his use of the storefront, it went down in value from $500,000 to $490,000 (and it would not have lost this value if it was being used by Jamba Juice). How much revenue did Giles’s business generate? Giles is…ASLEY is in the business of purchasing accounts receivable from businesses at a discount and then collecting them. Last year, she purchased a $30,000 account receivable for $25,000. This year, the account was settled for $25,000. How much loss can Peggy deduct and in which year? a.$5,000 for the prior year. b.$5,000 for the prior year and $5,000 for the current year. c.$5,000 for the current year. d.$-0- for the current year.
- Renee operates a proprietorship selling collectibles over the Web, and last year she purchased a building for $24 million for her business. This year, Rene’s proprietorship reported revenue of $95.5 million and incurred total expenses of $88.6 million. Her expenses included cost of goods sold of $48.5 million. Sales commissions paid of $16.9 million. $10.5 million of interest paid on the building mortgage, and $12.7 million of depreciation. What’s Renee’s adjusted taxable income for purposes of calculating the limitation on business interest expense? What is the maximum amount of business interest expense that Renee can deduct this year, and how is the disallowed interest expense (if any) treated? Suppose that Renee’s revenue includes $5 million of business interest income. What is the maximum amount of business interest expense that could be deducted this year under the business interest limitation?In 2018 Giles inherited a storefront from his uncle and so he left his job as a school librarian (which paid $50,000 per year) to open a novelty shop called the Magic Box. Giles was able to make an assortment of trinkets using $20,000 worth of materials that he sold for a total of $60,000. In addition, he purchased another $170,000 worth of goods and resold them for $190,000. He pays $5,000 per year for electricity. In order to decorate his shop, he purchased $2,000 worth of memorabilia to hang on his walls using a loan from the bank that charges 10% interest. At the end of the year, he sold off the same memorabilia to another store for $1,000. While he knows he could have rented out his inherited storefront to Jamba Juice for $20,000 per year, he chose not to. Because of his use of the storefront, it went down in value from $500,000 to $490,000 (and it would not have lost this value if it was being used by Jamba Juice). 1. How much revenue did Giles’s business generate?What is the Amount Realized, Type and amount of Basis, Gain or Loss, and Character thereof: (Tasha owns a clothing store, specializing in custom uniforms. She purchased 1000 pieces of red and black uniforms at wholesale for 2 dollars a unit to resell, and now three years later she has been unable to move them. Now that the next generation of uniforms has arrived, she marks the red and black ones down to .50 per unit and sells them to one buyer.
- Given the situations below, which item still has the same basis as when it was purchased? Bob sold his rental property after claiming depreciation. Ebenezer's's father gifted him a car that cost him $25,000. The FMV on the date of the gift was $15,000. Ebenezer sold the car at a loss. Liz Marley acquired a rare stamp as a bequest when her father passed away. A coin is now worth double what Tim paid for it. a. Bob's rental property. b. Ebenezer's car. c. Liz's stamp. d. Tim's coin. For the "kiddie tax" rule to apply, the child must a. Have at least one living parent. b. Not have attained age 23 in the tax year.Ester has a small store. For the current month, she purchased merchandise costing 75000 for which she paid for 7500. She sold 60% of the merchandise for 68000, after spending for various expenses totaling 13000. She also paid 2000 for the interest on a money she borrowed for her store. a. How musch was her cost of sales?b. How much gross profit did she make?c. How much operating profit did she make?Lee and Barbara Fletcher own Boos and Roos Antiques and they have decided to sell the business so they can move to Sarasota, FL to be near their son and get away from winter once and for all. Boos and Roos is located in a small, stand-alone building that it owns. Lee and Barbara originally purchased the building for $275,000 and it is currently appraised at $675,000. The window treatments, furnishings, and display cabinets originally cost $200,000 and are currently valued at $188,700. The current inventory has a balance sheet value of $300,000 and its retail market value is typically 160% of its cost. Mary Ann expects the store to collect 90% of its accounts receivable of $20,000. The business has $16,000 in cash and $44,000 of debt, which will be assumed by the buyer. What is the market value of Boos and Roos?