Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Sales Asset Price Cost Building $234,200 $204,200 Equipment 84,200 152,200 Accumulated Depreciation $56,200 27,200 Lily's taxable income before these transactions is $164,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the following long-term assets used in her business: Sales Asset Price Cost Building $234,200 $204,200 Equipment 84,200 152,200 Accumulated Depreciation $56,200 27,200 Lily's taxable income before these transactions is $164,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
Chapter14: Choice Of Business Entity—operations And Distributions
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2018, she sells the
following long-term assets used in her business:
Sales
Asset
Price
Cost
Building
$234,200 $204,200
Equipment 84,200 152,200
Accumulated
Depreciation
$56,200
27,200
Lily's taxable income before these transactions is $164,700.
What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do
not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
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ISBN:
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Author:
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Publisher:
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