What is the amount and character of the gain to the purchase

Assignment Help Accounting Basics
Reference no: EM133227950

Mac invented a process for cleaning old aluminum siding. He obtained a patent for this process. His basis in the patent is $50,000. Because he did not have the capital to reduce his invention to practice, he sold the patent to a wealthy individual for $600,000 six months after acquiring the patent. a. What is the amount and character (Le. long-term, short-term) of the gain? a. Subsequently, the purchaser decided not to reduce the patent to practice and sold the patent within two months to a Chinese company for $1,000,000. What is the amount and character of the gain to the purchaser?

Reference no: EM133227950

Questions Cloud

Provide feedback about the role technology plays : Provide feedback about the role technology plays in their experience and the role it plays in yours. Compare and contrast your answers
Compare gastrin and cck : In review of the GI tract, compare gastrin, CCK, and secretin being sure to include the following. Be as specific as possible in all explanations.
Explain what roles social media plays in modern terrorism : In a paper explain what roles social media plays in modern terrorism and how social media helps and/or hinders terrorist activities and recruiting
Discuss the issue of christian ethics : Write a 500-word essay, using proper essay format, to discuss the issue of Christian ethics. Discuss it in the context of ethics as understood by the Greeks
What is the amount and character of the gain to the purchase : Mac invented a process for cleaning old aluminum siding. He obtained a patent for this process. His basis in the patent is $50,000. Because he did not have the
Evaluate the policies and procedures of the food : For each of the following descriptions, indicate which type of audit (financial statement audit, audit of internal control, compliance audit, operational audit,
How have you worked with others at your workplace this week : How have you worked with others at your workplace this week? What challenges have you experienced in collaborating with others at work
Prepare daylen? income statement : Daylen Hair? Stylists's adjusted trial balance follows. Prepare Daylen?'s income statement for the year ended December 31?, 2018. LOADING... ?(Click on the icon
Identify the cell membrane-organelles : Identify and explain which parts of the cell membrane, organelles, and nucleus may have similar functions to rooms, appliances, plumbing.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Depreciation is computed for financial reporting purposes

Depreciation is computed for financial reporting purposes by use of the straight-line method based on the useful lives

  Determine the average number of years

Your team works at a financial advisory firm, Determine the average number of years she can continue to draw down 50K before she runs out of money.

  Identify the main focus in process costing

Are the journal entries that match cost flows to product flows in process costing primarily the same or much different than those in job order costing? Explain.

  Prepare the journal entry that are necessary

Assuming that Creative Inc.'s fiscal year ends on December 31 and depreciation has been recorded through December 31, 2019, prepare the journal entry

  Prepare the intercompany transaction worksheet elimination

Prepare the intercompany transaction worksheet elimination for the preparation of the 2016 consolidated financial statements.

  Prepare the entry to close income summary

Any profit remaining is to be allocated 45% to Cornish, and 55% to Duffee. Profit for their first year of operations is $80,000. Prepare entry to close Income

  Determine Reagan total monthly home-related expenses

Determine Reagan's total monthly home-related expenses (loan payment, insurance, and taxes) and determine whether the bank will approve the loan

  Provide the journal entry to account for depreciation

Provide the appropriate journal entry at 30 June 2022 to account for the impairment. Provide the journal entry to account for depreciation in 2023

  What are four common causes of corporate failure

What are four common causes of corporate failure? Define what is meant by 'earnings' and outline why it is important to shareholders

  Calculate the incremental profit or loss

Exercise - Incremental Analysis and Opportunity Cost. Calculate the incremental profit or loss associated with accepting the New England investments group

  What Retained earnings was understated by

Crane Company purchased equipment that cost $3250000 on January 1, 2017. The entire cost was recorded as an expense.

  Use the information presented for ottawa corporation

Use the information presented for Ottawa Corporation in BE10-14, but assumes the machinery is sold for $5,200 instead of $10,500. Prepare journal entries to

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd