Answer:
A. $6000 ordinary income on sale of a creative asset by the creator of the asset.
B. $4000 ordinary income on the sale of inventory.
C. $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Explanation:
The taxpayer sold a painting to Reller Gallery for $6000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
A. $6000 amount realized minus zero basis is equal to $6000 ordinary income on sale of a creative asset by the creator of the asset.
Reller Gallery sold the painting purchased by from Kara to a regular customer, Lollard Inc. for $10000. So, the tax payer amount and the character of tax payer gain or loss is as follows:
B. $10000 amount realized minus $6000 cost basis is equal to $4000 ordinary income on the sale of inventory.
Lollard Inc., the tax payer, was the regular customer that purchased the painting from the Reller Gallery. Lollard showed the painting in the lobby of its corporate headquarters until it sold "Shenandoah Skies" painting to a collector from Dallas. Where the collector paid $45,000 for the painting. So, the tax payer amount and the character of tax payer gain or loss is as follows:
C. $45000 amount realized minus $10000 cost basis is equal to $35000 capital gain on sale of a capital asset. (which is a non depreciable business personality).
Answer:
The correct answer is letter "A": a physical inventory is taken at the end of the period.
Explanation:
When the general ledger is only updated by the end of a period it is said that the firm is using a periodic inventory system. This approach is implemented because physical inventories could be time-consuming. It is even more helpful for small businesses since their inventory is limited.
The value of the item. ♀️
Two are true.
Credit card transactions can impact your credit score. Credit cards also typically offer more fraud protection than debit cards.
