Taxable Income, Taxation

Assignment Help:
John and Ellen Brite are married and file a joint return. John owns an unincorporated specialty electrical lightning retail store, Brite-On had the following assets on January 1, 2011: Old store building purchased April 1, 1999 $100,000 Equipment ( 7-years recovery) purchased January 10, 2006 30,000 Inventory valued using FIFO method: 4,000 light bulbs $5/bulb Brite-On purchased a competitor''s store on March 1, 2011 for $107,000. The purchase price included the following: New store building $60,000 (FMV) Land 18,000 (FMV) Equipment(5-year recovery) 11,000 (FMV) Inventory:3000 light bulbs $6/bulb (cost) On June 30, 2011, Brite-On sold the 7-year recovery period equipment for $12,000. Brite- On leased a $30,500 car for $500/month beginning on January 1, 2011. The car is used 100% for business and was driven 14,000 miles during the year. Brite-On sold 8,000 light bulbs in august 2011 at a cost of $7/bulb. Brite- On had the following revenues (in addition to the sales of light bulbs) and additional expenses: Service revenues $64,000 Interest expenses on business loan 4000 Auto expenses (gas, oil, etc,) 3,800 Taxes and licenses 2,800 Salaries 24,000 John and Ellen also had some personal expenses: Medical bills $4,500 Real property taxes 3,800 Home mortgage interest 9,000 Charitable contribution (cash) 600 The Brites recived interest income on a bank saving account of $275. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume John spent 100% of his time at the store while Ellen spends no time at the store. Additional Facts: Equipment acquired in 2006: The Brites elected out of bonus depreciation and did not elect Sec. 179. Equipment acquired in 2011: The Brites elected Sec. 179 to expense the cost of the 5-year equipment but elected out of bonus depreciation. Lease inclusion rules require that Brite-On reduce its deductible lease expense by $15 Compute the Brite''s taxable income and balance due or refund for 2013

Related Discussions:- Taxable Income

Investment account output, Suppose a resident with yearly income of $40,000...

Suppose a resident with yearly income of $40,000.00. The Medicare Levy will be $600.00 and the taxes will be $5,550.00/year or $106.73/week. His/her net salary per year will be $33

Tax, Home Cable TV Company, an accrual basis taxpayer, allows its customers...

Home Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the month ($25 each month), by the year ($280 per year), or two years in advance ($540). In Decemb

What reasons would a government introduce a tax, Question 1: "The legit...

Question 1: "The legitimate object of government is to do for a community of people whatever they need to have done, but cannot do at all, or cannot so well do, for themselves

What is the standard deviation of return, A client of Investment Advisor As...

A client of Investment Advisor Associates (IAA), Gillian Bissett, has recently won $5 million in the lottery and has asked for investment advice. She has indicated that she would l

Income tax liability, The following information is available for Kessler Co...

The following information is available for Kessler Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax

Graphing Taxation, How does this variation affect people and corporation?

How does this variation affect people and corporation?

Beneficial for gencorps shareholders, In May 2003, Gencorp acquired Sequa C...

In May 2003, Gencorp acquired Sequa Corp.'s propulsion subsidiary ARC for $133million in cash and $11 million in transactions costs. Table below lists selected information about

Describe what is the incidence of tax, Tax incidence can be separated into-...

Tax incidence can be separated into- 1. Formal incidence: the party liable to the tax 2. Informal incidence: party, who really pays the tax The tax incidence is decided by t

Calculate tax liability, Hello, I am  zainab ali, i want help in Tax ass...

Hello, I am  zainab ali, i want help in Tax assignment.. In 2012 Joe, age 15, earned $2900 from acting and had $12,200 of interest income and $14,000 of taxable qualifie

Write Your Message!

Captcha
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