b. What amount can Derek deduct on his 2022 tax return as Section 197 intangible amortization? If required, round the final answer to the nearest dollar. Use months, not days, in your computations. $ 4,564 X
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- In 2019, Mary sells for $24,000 a machine used in her business. The machine was purchased on May 1,2017, at a cost of $22,000. Mary has deducted depreciation on the machine of $6,000. What is the amount and nature of Mary's gain as a result of the sale of the machine? $2,000 Section 1231 gain $8,000 ordinary income under Section 1245 $6,000 ordinary income and $2,000 Section 1231 gain $6,000 Section 1231 gain and $2,000 ordinary income under Section 1245 None of the aboveVorst depreciates Asset C by the straight-line method. On June 30, 2020, Vorst sold Asset C for 28,000 cash. How much gain (loss) should Vorst record in 2020 on the disposal of Asset C? a. 2,800 b. (2,800) c. (5,600) d. (8,400)Fareed sells a piece of equipment used in a business for $31,500 during 2021. The equipment was purchased on July 1, 2019, at a cost of $22,000. Fareed has taken $6,600 of depreciation on the equipment. What are the amount and classification of the gain on the sale by Fareed? Group of answer choices $9,500 Section 1231 gain. $16,100 ordinary income under Section 1245. $16,100 Section 1231 gain. $6,600 ordinary income under Section 1245 and $9,500 Section 1231 gain.
- If Ivanhoe paid $20,000 to a real estate broker on January 1, 2025, as a fee for finding the lessor, what is the initial measuremen of the right-of-use asset? (Round answers to O decimal places, e.g. 5,275.) Right-of-use asset $ 94178Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000, and it has claimed $ 33,800 of depreciation expense against the building. Required Assuming that Hauswirth receives $80, 500 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. Assuming that Hauswirth exchanges the warehouse in a like kind exchange for some land with a fair market value of $80, 500, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. Assuming that Hauswirth receives $27,500 in cash in year 0 and a S 88,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1.On April 12, 2020, Suzanne bought a computer for $20,000 for business use. This was the only purchase for that year. Suzanne used the most accelerated depreciation method available but did not apply Sec. 179 or bonus depreciation. Suzanne sells the machine in 2021. The depreciation on the computer for 2021 is a. $2,000. b. $3,200. c. $4,000. d. $6,400.
- Bev bought a small mom and pop grocery store. The sale was completed and Bev obtained ownership on July 1, 2021. The total cost of the store was $500,000. Of this $100,000 was allocated to Goodwill and $120,000 was allocated to a Covenant Not to Compete the sellers agreed to. The remaining cost was allocated to the building and inventory. Calculate Bev's Section 197 intangibles and the amortization she can claim for 2021.Randall Corporation (a C Corporation) acquires an apartment building for $200,000 on September 1, 2018 that he uses in his business. Randall then sells the apartment building on May 1, 2020 (after properly deducting depreciation for 2018, 2019, and 2020) for $210,000. What is the amount and character of the gain or loss on the sale of the apartment building in 2020? 2018 Depreciation: 2019 Depreciation: 2020 Depreciation: Adjusted Basis: Gain/Loss: Character of Gain/Loss:Gaston owns equipment that cost $27,500 with accumulated depreciation of $22,000. Gaston sells the equipment for $5,000. Which of the following would not be part of the journal entry to record the disposal of the equipment? Multiple Choice Debit Accumulated Depreciation $22,000. Credit Equipment $27,500. Debit Loss on Disposal of Equipment $500. Credit Gain on Disposal of Equipment $500. Debit Cash $5,000.
- Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $72.500. and it has claimed $24,800 of depreciation expense against the building. Required: a. Assuming that Houswirth receives $59,700 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $59,700 compute Houswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Houswirth receives $26.500 in cash in year 0 and a $57,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Complete this question by entering your answers in the tabs below. Required a Required b Required c Assuming that Hauswirth receives $59,700 in cash for the warehouse, compute the amount…On October 1, 2023, Verónica purchased a business. Of the purchase price, $66,000 is allocated to a patent and $396,000 to goodwill. If required, round your intermediate values to nearest dollar and use in subsequent computations. Calculate Verónica's 2023 § 197 amortization deduction.Aqua Corporation purchases nonresidential real property on May 8, 2018, for $2,080,000. Straight-line cost recovery is taken in the amount of $208,000 before the property is sold on November 27, 2021, for $3,120,000. a. Compute the amount of Aqua's recognized gain on the sale of the realty. b. Determine the amount of the recognized gain that is treated as 5 1231 gain and the amount that is treated as 5 1250 recapture (ordinary income due to § 291). § 1231 gain: § 1250 recapture (ordinary income due to § 291):