Reference no: EM131728591
Question 1:
Your client brings you the following information for the past 3 years:
| |
Short-term capital gain
|
Short-term capital loss
|
Long-term capital gain
|
Long-term capital loss
|
|
Year 1
|
1000
|
1500
|
700
|
4000
|
|
Year 2
|
1000
|
900
|
100
|
3300
|
|
Year 3
|
900
|
200
|
100
|
1000
|
Using Excel, calculate the amount and type of capital gain or loss for each year, identifying any carryover.
Question 2:
Samson Corporation sold the following during the year:
- Two delivery trucks purchased in March 2016 for $78,000 are sold in June for $70,000
- Land used for storage for 5 years sold for $400,000 that had a basis of $80,000
- Machines with a basis of $200,000 are sold for $75,000 to obtain newer models.
- A building purchased 8 years ago for $350,000 is sold for $425,000 with an adjusted basis of $300,000 due to depreciation.
What is the character and amount of gain or loss recognized? Put your response in Excel.
Question 3:
Samantha sold the following assets during 2016:
- Her home, which she had lived in for 10 years, for a gain of $75,000
- Stock in BASS purchased in 2014 for $10,000 was sold for $16,000.
- Stock in TREBLE purchased on January 23, 2016 for $4,000 was sold on October 15, 2016 for $4,500.
- A collectible motorcycle sold on August 19 for $17,000. She had purchased it for $15,000 in December of 2013.
- Determine the character and amount of Samantha's gains and losses.
- How would your answer change if Samantha had initially purchased her home as a vacation home but has used it as her principle residence for the last 4 years? Put your answers in Excel.
Question 4:
Determine the amount realized and the character by Solar Corporation on the sale of the following equipment:
PV1 purchased in 2012 for $10,000 and sold for $8,000. PV1 has an adjusted basis of $5,000.
PV2 purchased in 2013 for $25,000 and sold for $16,000. PV2 has an adjusted basis of $18,000.
Assume Solar Corporation had ordinary income of $35,000 from all other sources and no other asset sales or transactions. How does the sale of PV1 and PV2 affect ordinary income? Put your answers in Excel.