What is the net book value of the machine for tax purposes

Assignment Help Financial Accounting

Reference no: EM132799408

Question - SAL PREPARES HIS FINANCIAL STMTS USING STRAIGHT LINE DEPRECIATION. SAL FILES HIS TAX RETURN USING MACRS.

MACHINE DEPRECIABLE BASIS 312,000

LIFE 5 YEARS

SALVAGE VALUE 0

DATE PLACED IN SERVICE APRIL 1, YR 1

DATE SOLD. JAN 1, YR 4

SALES PRICE. 127,000

REQUIRED -

1: What is the loss on sale for financial statement purposes recorded on January 1, year 4?

2: What is the gain on sale for tax purposes recorded on January 1, year 4?

3: What is Sal's year 4 m-1 adjustment related to the sale?

4: What is the net book value of the machine for tax purposes at December 31, yr 2?

Reference no: EM132799408

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