How much after tax cash will have if sell norses assets

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Reference no: EM13215621

Geoffery and Sue are equal owners of Norse Corporation. They are considering a sale of the business. How much after tax cash will they have if they sell Norse's assets? How much if they sell the stock? assets? How much if they sell th

Adjusted sell 2500000 2500000
Basis FMV asset basis -1450000
Cash 50000 50000 1050000
Inventory 80000 120000 tax rate 35%
Furniture and fixtures * 70000 80000 367500 -367500
Building ** 250000 400000 cash to shareholder 2132500 2132500
Land 1000000 1500000 stock basis -500000
Total 1450000 2150000 1632500
20%
Sale price 2500000 326500 -326500
1806000
Geoffery's stock basis 250000
Sue's stock basis 250000 Sale proceeds 2500000 2500000
stock basis 500000
 Accumulated MACRS depreciation 50000 2000000
 Accumulated Straight Line depreciation 300000 capital gain rate 0.2
400000 -400000
2100000

 

Geoffery and Sue are equal partners of Norse LLC. They are considering a sale of the business. How much after tax cash will they have if they sell Norse's assets?

Adjusted
Basis FMV Gain
Cash 50000 50000 0
Inventory 80000 120000 40000 35% 14000 ord income
Furniture and fixtures * 70000 80000 10000 35% 3500 § 1245
Building ** 250000 400000 150000 25% 37500 § 1250
Land 1000000 1500000 500000 20% 100000 § 1231
Total 1450000 2150000 0
1050000 20% 210000 LTCG
Sale price 2500000 365000

Geoffery's basis 250000 sale proceeds 2500000
Sue's basis 250000 tax -365000
cash 2135000
 Accumulated MACRS depreciation 50000
 Accumulated Straight Line depreciation 300000

Reference no: EM13215621

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