What tax factors should bridgette consider

Assignment Help Financial Accounting

Reference no: EM131212021

Bridgette is known as the “doll lady.” She started collecting dolls as a child, always received one or more dolls as gifts on her birthday, never sold any dolls, and eventually owned 600 dolls. She is retiring and moving to a small apartment and has decided to sell her collection. She lists the dolls on an Internet auction site and, to her great surprise, receives an offer from another doll collector for $45,000 for the entire collection. Bridgette sells the entire collection, except for five dolls she purchased during the last year. She owned all of the dolls sold for more than a year. What tax factors should Bridgette consider in deciding how to report the sale?

Reference no: EM131212021

Questions Cloud

Compute the amount of the work in process inventory : The following information was taken from the accounting records of Reliable Tool Corporation: Work in process inventory, beginning of the year $ 35,000 Cost of direct materials used 260,000 Direct labor cost applied to production 150,000 Cost of fini..

Assuming use of fifo-lifo-weighted average : Jones Company started the year with no inventory, during the year it purchased two identical inventory items at different times. The first item cost $1,060 and the other $1,380 jones sold one of the items during the year how much product cost would b..

Determine the dollar amount of the flexible budget : Actual costs incurred during the production of? 60,000 mattresses? were; direct? materials, $110,000; direct? labor, $60,000; variable? overhead, $100,000; and fixed? overhead, $97,000. If Take Eight evaluated performance by the use of a flexible? bu..

Beginning retained earnings reported : Cray Cray is a merchandiser of gag gifts. The? company’s net income for the prior year was? $13,200. The beginning Retained Earnings reported on the Balance Sheet was? $10,000. The ending Retained Earnings reported on the Balance Sheet was? $8,900. T..

What tax factors should bridgette consider : Bridgette is known as the “doll lady.” She started collecting dolls as a child, always received one or more dolls as gifts on her birthday, never sold any dolls, and eventually owned 600 dolls. She is retiring and moving to a small apartment and has ..

Cash versus accrual bases of accounting : Cash versus Accrual Bases of Accounting. The following events occurred at VG Consulting during the most recent month. For each event, determine the revenue or expense under the cash and accruall basis of accounting.

What are some of the key characteristics of an embedded os : What are some typical requirements or constraints on embedded systems?

What is the value of the ending inventory of product : Webster Company produces 35,000 units of product A, 30,000 units of product B, and 14,500 units of product C from the same manufacturing process at a cost of $385,000. A and B are joint products, and C is regarded as a by-product. What is the value o..

Sales must be made to produce the target income : Watson Company has monthly fixed costs of $89,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,600, what dollar amount of sales must be made to produce the target income?

User Account

All Pages