Answer:
Please see explanation
Explanation:
property taxes
-Assign to Factory cost pool
heat and air-conditioning-Assign to Factory cost pool
electricity, machines
-Assign to machine cost pool
plant depreciation
-Assign to Factory cost pool
electricity, plant
-Assign to Factory cost pool
machine maintenance wages-Assign to machine cost pool
They are examples of non sworn personnel
Answer:
(a) Brittany loss due to taxes = Basis - fair market value
= $184,000 - $160,000
= $24,000
Therefore, Brittany will have a $24,000 loss that is not deductible.
(b) Tax consequences to Ridge if he later sells the stock for $190,000 are as follows:
- Realized gain = $30,000 and Recognized as a gain for tax payers = $6,000
- Realized and recognized loss = $8,000
- There is no recognized gain for Ridge and unrecognized loss of $10,000. It is permanent lost.