Please help answer below questions with the steps. Thank you! 36. During 2017, M
ID: 2341063 • Letter: P
Question
Please help answer below questions with the steps. Thank you!
36. During 2017, Myca sells her car for $5,000. She acquired the car in 2013 for $11,000 and has used it 60% for business and 40% for personal use. She deducted $5,280 in depreciation. What is the taxable gain or loss from the sale of the car attributable to her business use?
a.
$3,680 gain
b.
$432 gain
c.
$720 loss
d.
$2,280 loss
e.
$1,680 gain
37. Charlotte traveled to Annapolis to attend a three-day business conference. After her meetings concluded, she stays 2 additional days sightseeing. Charlotte's airfare is $400 and pays $110 per night for lodging, $60 a day for meals, and $20 a day for incidentals. How much of Charlotte's costs can be deducted as a business expense?
a.
$- 0 -
b.
$400
c.
$880
d.
$970
e.
$1,200
a.
$3,680 gain
b.
$432 gain
c.
$720 loss
d.
$2,280 loss
e.
$1,680 gain
Explanation / Answer
Answer to question 36 :
Business Share in Sale price of car = $5,000 * 60% = $3,000
Business Share in Purchace price of car = $11,000 * 60% = $6,600
WDV of Car as shown in Business
= Business Share in Purchace price of car - Depreciation already deducted upto the date of Sale
= 6600 - 5280 = $1,320
Taxable Capital Gain on Sale of Car
= Business Share in Sale price of car - WDV of Car as shown in Business
= 3000 - 1320 = $1,680