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Anna007 [38]
2 years ago
15

A company purchased a building for $850,000 on January 1, 2010. As of December 31, 2014, $200,000 of accumulated depreciation ha

d been recorded related to this building. The building was sold to another party for $1,250,000 on January 1, 2015. On the sale of this building, the company should recognize:_______
a. A gain of $650,000
b. A loss of $650,000
c. A gain of $600,000
d. A loss of $600,000
Business
1 answer:
AVprozaik [17]2 years ago
3 0

Answer:

On the sale of this building, the company should recognize:_______

c. A gain of $600,000

Explanation:

a) Data and Calculations:

The cost for the Purchase of building on January 1, 2010 = $850,000

Accumulated depreciation as of December 31, 2014 =           200,000

Book value of building as of December 31, 2014 =               $650,000

Sale proceeds on January 1, 2015 =                                    $1,250,000

Gain from the sale of the building =                                      $600,000

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Answer:

The correct answer is the third option: Provides useful information that can serve as a basis for forecasting future performance.

Explanation:

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2 years ago
Mustang Corporation had 100,000 shares of $2 par value common stock outstanding. On December 31, 2018, the company's board of di
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Answer:

The following journal entries are required on declaration date:

Dr Retained earnings ($10*20000)                                    $200,000

Cr Common stock distributable dividend($2*20000)                       $40000

Cr Paid=in share capital in excess of par value of $2                            $160000

While on distribution date the entries required are:                                                                

Dr Common stock distributable dividend     $40000

Cr Common stock                                                         $40000

Explanation:

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3 years ago
George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 2000 Lakeview Drive, Cleveland, OH 49001 and w
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Answer:

Check the explanation

Explanation:

1040 form

Your first name : George Last Name: Large SSN:000-11-1111

Spouse’s first name :Marge Last Name: Large SSN:000-22-2222

Home address:

2000, Lake View Drive,

City, town or post office, state, and ZIP code:

Cleveland, OH,49001

Filing Status:

2) Married filing jointly

Income :

7)Salary:::::::::::::::::::::::::::::::::::::::::::$80,000

12 Business income:::::::::::::::::::::::::$4,375(SCHEDULE C)

22) Gross income=$84,375

27 Deductible part of self-employment tax.=$669.37

($4,375 * 15.3%/100=$669.37( $117,000 or less, multiply line 4 by 15.3% as per irs for 2014)

36 Add lines 23 through 35 = $669.37

37 Subtract line 36 from line 22. =$84,375 - $669.37=$83,705.63

38) Amount from line 37 (adjusted gross income) =$83,705.63

40 Itemized deductions:::::::::::::::::::::::::::::::::::::::::$18,870.89(see SCHEDULE A)

41 Subtract line 40 from line 38 :::::::::::::::::::::::::$64,923.98($83,793.12 - $18,870.89=$64,922.23)

42) Exemptions:::::::::::::::::NIL

43)Taxable income Subtract line 42 from line 41::::::::::::::::$64,922.23

55) Taxable income(no other credits and Tax)::::::::::::::::::::::$64,923.98

other taxes :

56 Self-employment tax:::::::::::::::::::::: $669.37

61) total tax =$669.37

Payments

62 Federal income tax withheld:$8,500

72 ) total payments= $8,500

_______________________________________________________

SCHEDULE A (Form 1040) Itemized Deductions

Taxes paid

6 Real estate taxes :::::::::::::::::::::::::::::$2,500

9 Add lines 5 through 8::::::::::::::::::::::::$2,500

10 Home mortgage interest :::::::::::::::::$3,375 *75/100=$3,375)

15 Add lines 10 through 14 .:::::::::::::::::$3,375

16 Gifts to Charity::::::::::::::::::::::::::::::::$3,500

19 Add lines 16 through 18 :::::::::::::::::::$3,500

21 Unreimbursed employee expenses:::$11,170( see the explanation 2106 form)

24 Add lines 21 through 23::::::::::::::::::$11,170

25 Enter amount from Form 1040, line 38 :::::::$83,793.12

26 Multiply line 25 by 2%:::::::::::::::::::::::::::::::$1 674.11

($83,705.63* 2/100=1 674.11)

27 Subtract line 26 from line 24=$9,494.14

($11,170 - 1 674.11=$9,495.89)

29)Total Itemized Deduction

29 Add the amounts in the far right column for lines 6 through 28. Also, enter this amount on Form 1040, line 40=$18,870.89

($2,500 +$3,375+$3,500+$9,495.89=$18,870.89

_______________________________________________________________________

SCHEDULE C (Form 1040)

Name of proprietor:Marge Large SSN:000-22-2222

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Part 1

1) Gross receipts or sales::::::::::::::::::::::::::::$15,000

7 Gross income:::::::::::::::::::::::::::::::::::::::::::$15,000

Part II

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16 Interest: a Mortgage=$1,125($4,500 *25/100=$1,125)

22 Supplies =$5,000

25 Utilities=$500($2,000 * 25/100=$500)

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28) Total expenses : Add lines 8 through 27a:$10,625

29 Tentative profit Subtract line 28 from line 7 =$4,375

_________________________________________________

Form 2106

Employee Business Expenses

Part 1

Expense

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6) total Expense =$16,170

7)reimbursements received =$5,000

8)Subtract line 7 from line 6=$16,170 - $5,000=$11,170

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