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 Cost $ 203,400 151,400 Accumulated Depreciation $ 55,400 26,400 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.)
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 Cost $ 203,400 151,400 Accumulated Depreciation $ 55,400 26,400 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.)
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 32P
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Domestic
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
Cost
$ 203,400
151,400
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.)
$
Amount
Accumulated
Depreciation
237,700
$ 55,400
26,400
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