John and ellen brite are married and file a joint return

Assignment Help Accounting Basics

Reference no: EM13525917

John and Ellen Brite are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. Brite-On had the following assets on January 2, 2013:

Assets Cost
Old store building purchased April 1, 2002 200,000
Land $40,000
Equipment (7-year recovery) purchased January 10, 2008 55,000
Inventory valued using FIFO method:
Old inventory: 40,000 light bulbs $4/bulb
Newest 50000 5

Brite-On purchased a competitor's store on March 1, 2013 for $225,000. The purchase price included the following:
New store building $161000(FMV)
Land 50000 (FMV)
Equipment (5-year recovery) 30,000 (FMV)
Inventory: 5,000 light bulbs $7/bulb (cost)

On June 30, 2013, Brite-On sold the 7-year recovery period equipment for $20,000. Brite-On sold 60,000 light bulbs at a price of $12/bulb during the year.
Brite-On had the following revenues
Service revenues $45,000
Interest expense on business loans 7950
Operating expense 18795
Taxes and licenses 15575
Utilities 29600

John and Ellen also had some personal expenses:
Medical bills $ 6600
Real property taxes 9300
Home mortgage interest 123,00
Charitable contributions (cash) 5300
married jointly, calculate tax return

Reference no: EM13525917

Questions Cloud

How to evaluate the calorimeter constant and enthalpy : When 1.0 g of NaOH is dissolved in this same calorimeter the temperature raises by 1.6 C. Calculate the calorimeter constant and enthalpy for one mole of NaOH.

Obtain the charge on the plates after the glass is removed : A parallel plate capacitor of capacitance 4.9 µF has the space between the plates filled with a slab of glass with ? = 4.0. Find the charge on the plates after the glass is removed

State reaction between nitrogen and oxygen gases requires : The reaction between nitrogen and oxygen gases requires the absorpotion of 43 kJ of energy per mole of nitrogen according to the following chemical equation,

What are the pros and cons of gamification : Explain the Fermi Paradox. What do you think is a possible explanation for the Fermi Paradox? Explain. What is gamification? What are the pros and cons of gamification? What things should be gamified to make the world a better place?

John and ellen brite are married and file a joint return : John and Ellen Brite are married and file a joint return. They have no dependents. John owns an unincorporated specialty electrical lighting retail store, Brite-On. Brite-On had the following assets on January 2, 2013:

Explain what would be pmm concentration of a solution : What would be pmm concentration of a solution of 0.000775 mol of sodium chloride in 1250 ml of solution. (Molecular weight of sodium chloride is 58.5)

Determine how much mass is hanging over the pulley : In an experiment on standing waves, a mechanical vibrator drives a string. Both ends of the string are fixed. The distance between the fixed ends is 80.0 cm. how much mass is hanging over the pulley

Find how much further would the tortoise have : The three-toed sloth is the slowest moving land mammal. On the ground, the sloth moves at an average speed of 0.030 m/s, how much further would the tortoise have gone relative to the sloth

Evaluate the equilibrium concentration of ag(nh3)2 : A 0.32-mol amount of NH3 is dissolved in 0.47L of a 0.38 M silver nitrate solution. Calculate the equilibrium concentration of Ag(NH3)2+ and Ag+ and NH3

User Account

All Pages