LO.3 Rod Clooney purchases Agnes Mitchell's sole proprietorship for $990,000 on August 15, 2019. The assets of the business are: Asset Agnes's Adjusted Basis FMV Accounts receivable $ 70,000 $ 70,000 Inventory 90,000 100,000 Equipment 150,000 160,000 Furniture and fixtures 95,000 130,000 Building 190,000 250,000 Land 25,000 75,000 Total $620,000 $785,000 b. Determine Rod's basis for each of the assets.

2 nts BHL owns only one asset-the warehouse building and related land that is rented by Quantro for $39,600 per year. The property was originally owned by Quantro but was sold to BHL several years ago as a means to reduce the risk exposure of this appreciating asset. On December 31, 2023 (the year-end of both companies), BHL sold the warehouse property to a third party for $407,000 (land $44,000, building $363,000). The property originally cost $352,000 (land $27.500, building $324,500). The undepreciated capital cost of the building at December 31, 2022, was $279,400. One month before selling the warehouse property, BHL purchased a newly constructed warehouse property for $528,000. (land $55,000, building $473,000.). Required: Determine BHL's net income for tax purposes for 2023, B Answer is not complete. Rent CCA on new warehouse Recapture of CCA Property Income Building Taxable capital gains Land: Taxable capital gains Taxable Capital Gains $ 0 S 0 Net Income for Tax purposes Prev 2…

am. 110.

On January 1, 2022, Don Buchanan purchases a business that he will carry on as a sole proprietor. The purchase price includes $60,000 for goodwill. The business has a fiscal period that ends on December 31 and, for 2022, Don claims the maximum CCA. On January 1, 2023, the business is sold in an arm's length transaction with $82,000 paid for the goodwill. The affect of the sale of the goodwill is to increase net income for 2022 by: a. $14,000. b. $13,500. c. $15,500. d. $11,000.