Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $ 233,400 83,400 Description Taxable income Tax liability Lily's taxable income before these transactions is $193,900. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Cost $ 203,400 151,400 S Amount Accumulated Depreciation $ 55,400 26,400 237,700

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in
her business:
Asset
Building
Equipment
Sales Price
$ 233,400
83,400
Description
Taxable income
Tax liability
Lily's taxable income before these transactions is $193,900. What are Lily's taxable income and tax liability for the year? Use Tax Rate
Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Cost
$ 203,400
151,400
$
Amount
Accumulated
Depreciation
$ 55,400
26,400
237,700
Transcribed Image Text:Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2021, she sells the following long-term assets used in her business: Asset Building Equipment Sales Price $ 233,400 83,400 Description Taxable income Tax liability Lily's taxable income before these transactions is $193,900. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Cost $ 203,400 151,400 $ Amount Accumulated Depreciation $ 55,400 26,400 237,700
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