Sole proprietor of high-volume drug

Assignment Help Financial Accounting

Reference no: EM133208664

Sam was the sole proprietor of a high-volume drug store that he owned for 15 years before he sold it to Dale Drug Stores, inc., in the current year. Besides the $900,000 selling price for the store's tangible assets and goodwill, Sam received a lump-sum of $30,000 in the current year for his agreement not to operate a competing enterprise within 10 miles of the store's location for a period of 6 years. The $30,000 will be taxed to Sam as

$30,000 ordinary income in the current year.

$30,000 short-term capital gain in the current year.

$30,000 long-term capital gain in the current year.

Ordinary income of $5,000 a year for 6 years.

Reference no: EM133208664

Questions Cloud

Identification of related party transactions : The firm did not have adequate internal controls and those which relate to the identification of related party transactions.

When does any object have a truth value for you : When does any object have a truth value for you? When does any object have a truth value for William James? Both in 400 words

Accept the reaudit engagement : What issues should be of concern to Margaret in deciding whether Dairy and Cheese should accept the reaudit engagement?

How many students does college need to enroll to break even : How many students does the college need to enroll in the first year to break even?

Sole proprietor of high-volume drug : Sam was the sole proprietor of a high-volume drug store that he owned for 15 years before he sold it to Dale Drug Stores, inc., in the current year.

Define each primary component of the information system : Define each primary component of the information system. Provide an example from your personal experience to support your answer

What are your obligations as broker : What are your obligations as a Broker if clients provide you documents with TFN evident under the Privacy Act 1988.

Discuss how native americans, albanians respond : Discuss how Native Americans, Albanians (in PowerPoint) respond to gender identities versus our own. Include in this discussion status within the group

Do you agree with this anthropological view of race : Do you agree with this anthropological view of race? Why or why not? Give an example to support your opinion.

User Account

All Pages