Amount and character of winchester gains and losses

Assignment Help Accounting Basics

Reference no: EM13130323

Winchester LLC sold the following business assets during the current year: (1) automobile, $30,000 cost basis, $12,000 depreciation, proceeds $20,000; (2) machinery, $25,000 cost basis, $20,000 depreciation, proceeds $10,000; (3) furniture, $15,000 cost basis, $10,000 depreciation, proceeds $4,000; (4) computer equipment, $25,000 cost basis, $6,000 depreciation, proceeds $10,000; (5) Winchester had unrecaptured Section 1231 losses of $3,000 in the prior 5 years. What is the amount and character of Winchester's gains and losses before the 1231 netting process?

A. $3,000 ordinary loss, $0 Section 1231 loss

B. $1,000 ordinary gain, $4,000 Section 1231 loss

C. $7,000 ordinary loss, $4,000 Section 1231 gain

D. $7,000 ordinary gain, $10,000 Section 1231 loss

Reference no: EM13130323

Questions Cloud

Illustrate what items are included in the category of cash : Good accounting systems help in managing cash and controlling who has access to it. Illustrate what items are included in the category of cash?

The bhagavad-gita : write a summary on The Bhagavad-Gita: The Tale of the Heike.

If 150 g of carbon reacts : If 150 g of carbon reacts with 250 g Cl2 with an 85% yield, what is the mass of CCl4 produced

Main organic product formed of acetyl chloride reacting : Major Organic Product Formed of Acetyl Chloride Reacting with Reagents, What major organic product would you expect to be formed when acetyl chloride reacts with each of the following reagents?

Amount and character of winchester gains and losses : What is the amount and character of Winchester's gains and losses before the 1231 netting process?

Essay comparing continental, pragmatic, and analytic : Write a 350- to 700-word essay comparing Continental, Pragmatic, and Analytic philosophies.

Illustrate what amlount should kim report in its flows : There was no amortization of bond premium or discount during the year. Illustrate what amlount should Kim report in its 2011 statement of cash flows for redemption of bonds payable?

What is the probability of a defect : Units with weights less than 5.8 or greater than 6.2 ounces will be classified as defects. What is the probability of a defect (to 4 decimals)?

How many grams of precipitate will form : How many grams of precipitate will form from 100mL solution that is both 0.90 M in Na2S and 0.20 M in PbCl2?

User Account

All Pages