Lui, Montavo, and Johnson plan to liquidate their Premium Pool and Spa business. They have always shared profit and losses in a 1:4:5 ratio, and on the day of the liquidation their balance sheet appeared as follows: Premium Pool and Spa Balance Sheet June 30, 2020 Assets Cash $ 84,250 Machinery $ 626,750 Less: Accumulated depreciation 156,000 470,750 Total assets $ 555,000 Liabilities Accounts payable $ 159,600 Equity Jim Lui $ 78,200 Kent Montavo, capital 202,800 Dave Johnson, capital 114,400 Total equity 395,400 Total liabilities and equity $ 555,000

Amelia’s business goes bankrupt this year. To close her business, Amelia starts by selling off her business assets. Below are the asset disposition transactions: Assets Purchased Date Cost Sold date Sold price Delivery car 5/1/23 30k 12/31/23 25k Furniture 3/20/20 40k 12/31/23 20k Equipment 4/1/20 110k 12/31/23 100k Land 1/1/22 150k 12/31/23 180k Assume there is no Section 179 and bonus depreciation. Use MACRS only for depreciation. Show detailed calculation and explanation a) Calculate total accumulated depreciation of each asset until the sold date (12/31/23).   b) Calculate the adjusted basis for each asset c) Calculate the gain/loss for each asset d) Point out the exact character of gain/loss for each asset gain/loss (ex: Ordinary, pure 1231, 1245, 1250, etc.) e) Calculate the Net 1231 Gain/Loss Hint: Be aware of 1245 Depreciation recapture and 1231 lookback rules     Hint: Review textbook chapter on this. In the year of disposition, under half-year convention, only ½ of MACRS…

Jag and rope Co., merged all the assets and liabilities. The company details as follows, Furniture OMR 40,000 & 50,000. Land OMR 60,000 & 40,000. Building OMR 100,000 & 50,000. Vechicle OMR 20,000 & 10,000 and Account payable OMR 40,000 & 60,000. How much value to get after the amalgamate. Select one: a. OMR 370,000 b. OMR 220,000 c. OMR 270,000 d. OMR 180,000

A