After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $324,000. Ingrid allocated $54,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Problem 10-71 Part b (Algo) b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $12,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?

After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $324,000. Ingrid allocated $54,000 of the purchase price to goodwill. Ingrid's business reports its taxable income on a calendar-year basis. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Problem 10-71 Part b (Algo) b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $12,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 44P

See similar textbooks

Similar questions

Required information Problem 10-71 (LO 10-4) (Algo) [The following information applies to the questions displayed below.] After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $444,000. Ingrid allocated $74,000 of the purchase price to goodwill. Ingrid’s business reports its taxable income on a calendar-year basis. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Problem 10-71 Part b (Algo) b. In lieu of the original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $22,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
In the below question part 2 would the recovery period be 60 months or 180 months? Thank you After several profitable years running her business, Ingrid decided to acquire the assets of a small competing business. On May 1 of year 1, Ingrid acquired the competing business for $300,000. Ingrid allocated $50,000 of the purchase price to goodwill. Ingrid’s business reports its taxable income on a calendar-year basis. How much amortization expense on the goodwill can Ingrid deduct in year 1, year 2, and year 3? In lieu of original facts, assume that Ingrid purchased only a phone list with a useful life of five years for $10,000. How much amortization expense on the phone list can Ingrid deduct in year 1, year 2, and year 3?
In year 0, Longworth Partnership purchased a machine for $53,000 to use in its business. In year 3, Longworth sold the machine for $42,400. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,800. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Problem 3-41 Part-a (Algo) a. What are the amount and character of the gain or loss Longworth will recognize on the sale? b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $61,750?
Required information Problem 11-41 (LO 11-3, LO 11-4) (Static) [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $22,000. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. Problem 11-41 Part-b (Static) b. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000? Answer is complete but not entirely correct. Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amount $ 27,000 $(27,000) X $ (27,000)
Exercise 6-31 (Algorithmic) (LO. 3) Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2023. Stanford incurred the following expenses: Total investigation costs related to the restaurant Total investigation costs related to the bakery $42,000 53,200 If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. What is the maximum amount Stanford can deduct in 2023 for investigation expenses?
This year Dan and Mike purchased realty for $218,500 and took title as equal tenants in common. However, Mike was able to provide only $53,500 of the purchase price and Dan provided the remaining $165,000. Required: a-1. Has Dan made a complete gift to Mike? a-2. What is the amount of the gift? Complete this question by entering your answers in the tabs below. Req A1 Req A2 What is the amount of the gift? Amount of gift
Exercise 14-20 (Algorithmic) (LO. 3) Sebastian purchases two pieces of equipment for $161,000. Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $112,700 and that of the second piece of equipment is $177,100. What is Sebastian's basis in these two assets? If required, round your interim calculations to two decimal places. Use rounded amounts in subsequent computations. If required, round final answers to the nearest dollar. Sebastian's basis for the first piece of equipment is $ 43,953 X and $ 108,031 X for the second piece of equipment. Show Transcribed Text 1st equip 2nd equip 1st ratio 2nd ratio 1st basis 2nd basis S 112700 177100 289800 SUM(E10:E11) 0.39 =E10/(E12) 0.61 =E11/(E12) C 43828 E10 E14 108228 =E11*E15 112700 177100 289800 -SUM(G10:G11) 0.39 0.61 43953 =G10 G14 108031 =G11 G15
Terry purchased a machine for $12,000; the seller is holding the note. Terry paid $2,400 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $3,600. Terry owes $8,000 to the Seller. What is Terry’s adjusted basis in the machine? Group of answer choices $10,800 $8,400 $2,800 $16,400
! Required information Problem 11-41 (LO 11-3, LO 11-4) (Algo) [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $55,500 to use in its business. In year 3, Longworth sold the machine for $38,600. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $28,200. Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. Problem 11-41 Part-c (Algo) c. What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $16,400? Description Total Gain or (Loss) Recognized Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) $1231 gain or (loss) Amount
Exercise 14-22 (LO. 3) Juliana purchased land three years ago for $50,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $70,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $45,000 on the date of the gift, and that Tom sold the land for $43,000. Tom's basis in the land is $ and he has a realized of $ on the sale.
Accounting 11) Jill purchased a printing press for her business on 6/15/21 costing $60,000. The installation cost $2,000 and the sales tax was $5,000. (a)What is Jill's basis in the equipment? (b)Using the info in question 11, what is the amount of depreciation for 2021?
Exercise 6-31 (Algorithmic) (LO. 3) Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2023. Stanford incurred the following expenses: Total investigation costs related to the restaurant Total investigation costs related to the bakery If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar. $44,000 54,300 What is the maximum amount Stanford can deduct in 2023 for investigation expenses? $ 1,295.56 X Feedback Check My Work Investigation expenses are expenses paid or incurred to determine the feasibility of entering a new business or expanding an existing business. They include such costs as travel, engineering and architectural surveys, marketing reports, and various legal and accounting…