Theta corporation formed 15 years ago in its first year it

Assignment Help Accounting Basics

Reference no: EM13581361

Theta Corporation formed 15 years ago. In its first year, it elected to use the cash method of accounting and adopted a calendar year as its tax year. It made an S election on August 15 of last year, effective for Theta's current tax year. At the beginning of the current year, Theta had assets with a $600,000 FMV and a $180,000 adjusted basis. During the current year, Theta reports taxable income of $400,000. - In the current year, Theta collects all $200,00 of accounts receivable outstanding on January 1 of the current year. The receivables had a zero adjusted basis. - On February 1, Theta sells automobile for $3,500. The automobile had a $2,000 adjusted basis and a $3,000 FMV on January 1 of the current year. Theta claimed $800 of MACRS depreciation on the automobile in the current year. - On March 1, Theta sells land (a Sec. 1231 asset) that it held three years in anticipation of building its own office building for a $35,000 gain. The land had a $45,000 FMV and a $25,000 adjusted basis on January 1 of the current year. - In the current year, Theta paid $125,000 of accounts payable outstanding on January 1 of the current year. All the payables are deductible expenses. What is the amount of theta's built-in gains tax liability?

Reference no: EM13581361

Questions Cloud

You purchase a home in feb 10th 2013 that you are going to : you purchase a home in feb 10th 2013 that you are going to use as a rental property. you paid 180000 and the land was

Sales totaled 1775500 variable selling expenses totaled : carr company produces a single product.during the past year carr manufactured 38000 units and sold 26500

How the consolidated retained earnings amount will be : strong co. acquired all of the outstanding stock of weak co. on jan 1 2012 for 360000in cash. annual excess

Mri company has one employee fica social security taxes are : mri company has one employee. fica social security taxes are 6.20 of the first 106800 paid to its employee and fica

Theta corporation formed 15 years ago in its first year it : theta corporation formed 15 years ago. in its first year it elected to use the cash method of accounting and adopted a

Which consists of a point charge of magnitude e surrounded : the neutral hydrogen atom in its normal state behaves in some respects like an electric charge distribution which

In addition include the tax benefits savings for the first : prepare a 500-750 word written response to the following in january 2010 salem corporation purchased 350000 of new

On april 2 2011 idaho mining co pays 3506670 for an ore : on april 2 2011 idaho mining co. pays 3506670 for an ore deposit containing 1417000 tons. the company installs

A company issued 10-year 8 bonds with a par value of 200000 : 1.a company issued 10-year 8 bonds with a par value of 200000. the company received 190000 for the bonds. using the

User Account

All Pages