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EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* Machinery $ 97,500 $ 39,660 Office equipment Warehouse Sale Price $ 70,000 57,500 125,000 50,000 12,470 163,500 21,620 72,700 n/a Investment securities Investment land 83,100 350,000 n/a 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute EzTech's taxable income. Taxable income < Required A Required B

EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* Machinery $ 97,500 $ 39,660 Office equipment Warehouse Sale Price $ 70,000 57,500 125,000 50,000 12,470 163,500 21,620 72,700 n/a Investment securities Investment land 83,100 350,000 n/a 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Complete this question by entering your answers in the tabs below. Required A Required B Compute EzTech's taxable income. Taxable income < Required A Required B

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges
Section: Chapter Questions
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EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Machinery Office equipment Warehouse Investment securities Investment land Accumulated Initial Basis Depreciation* $ 97,500 $ 39,660 50,000 12,470 163,500 21,620 72.700 n/a 350,000 n/a Sale Price $ 70,000 57,500 125,000 83,100 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment.
EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* Machinery $ 97,500 $ 39,660 Sale Price $ 70,000 57,500 Office equipment Warehouse 50,000 12,470 163,500 21,620 125,000 72,700 n/a Investment securities Investment land 83,100 350,000 n/a 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Complete question entering your answers in the tabs below. Required A Required B Compute EzTech's taxable income. Taxable income < Required A Required B >
Transcribed Image Text:EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* Machinery $ 97,500 $ 39,660 Sale Price $ 70,000 57,500 Office equipment Warehouse 50,000 12,470 163,500 21,620 125,000 72,700 n/a Investment securities Investment land 83,100 350,000 n/a 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Complete question entering your answers in the tabs below. Required A Required B Compute EzTech's taxable income. Taxable income < Required A Required B >
EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* Sale Price Machinery $ 97,500 $ 39,660 office equipment Warehouse $ 70,000 57,500 12,470 50,000 163,500 21,620 125,000 72,700 n/a Investment securities Investment land 83,100 350,000 n/a 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Complete this question by entering your answers in the tabs below. Required A Required B Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Taxable income < Required A Required B >
Transcribed Image Text:EzTech, a calendar year accrual basis corporation, generated $994,300 ordinary income from its business this year. It also sold the following assets, all of which were held for more than 12 months: Accumulated Initial Basis Depreciation* Sale Price Machinery $ 97,500 $ 39,660 office equipment Warehouse $ 70,000 57,500 12,470 50,000 163,500 21,620 125,000 72,700 n/a Investment securities Investment land 83,100 350,000 n/a 328,000 *Through date of sale. EzTech used the straight-line method to calculate depreciation on the warehouse and has no nonrecaptured Section 1231 losses. Required: a. Compute EzTech's taxable income. b. Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Complete this question by entering your answers in the tabs below. Required A Required B Recompute taxable income assuming that EzTech used the land in its business instead of holding it for investment. Taxable income < Required A Required B >
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