Reference no: EM132116368
Question - White Company acquires a new machine for $35,000 and uses it in White's manufacturing operations. A few months after White places the machine in service, it discovers that the machine is not suitable for White's business. White had fully expensed the machine in the year of acquisition using §179. White sells the machine for $5,000 in the tax year after it was acquired, but held the machine only for a total of 13 months. What was the tax status of the machine when it was disposed of and the amount of the gain or loss?
A capital asset and $5,000 gain.
An ordinary asset and $5,000 gain.
A §1231 asset and $5,000 gain.
A §1231 asset and $5,000 loss.
Copper Corporation sold machinery for $27,000 on December 31, 2015. The machinery had been purchased on January 2, 2012, for $30,000 and had an adjusted basis of $21,000 at the date of the sale. For 2015, what should Copper Corporation report?
Ordinary income of $6,000.
A §1231 gain of $3,000 and $3,000 of ordinary income.
A §1231 gain of $6,000.
A §1231 gain of $6,000 and $3,000 of ordinary income.
What is the payback period for the proposed investment
: The firm requires a 15% rate of return on all investments. The firm's tax rate is 38%. What is the payback period for the proposed investment
|
Process of physician completing laboratory order
: Draw a crossfunctional flowchart for the process of a physician completing laboratory order,
|
Compare the topics-education and politics
: Continue with the same TWO Spanish-speaking countries you used in week 4. Spain & Mexico. Compare and contrast ONE of the following topics.
|
What must be the price of the stock show your calculations
: A put option on Macrohard stock with a strike price of $36 has a time value of $1.50, What must be the price of the stock? Show your calculations
|
What should copper corporation report
: The machinery had been purchased on January 2, 2012, for $30,000, For 2015, what should Copper Corporation report
|
Compute dixie taxable income
: During the year, Dixie paid $226,600 income tax to Mexico and $339,600 income tax to Canada. Compute Dixie's taxable income
|
Define variety of methods to analyze data sets
: During the course, you have applied a variety of methods to analyze data sets and uncover important information used in decision making.
|
Optimal probability of having one-more empty seats on plane
: What is the optimal probability of having one or more empty seats on the plane?
|
Based on imaginary binding case precedents
: based on “Imaginary Binding Case Precedents” and once you have thought through the case study analyze both scenarios,
|