Check my work 7 Required information [The following information applies to the q
ID: 2512028 • Letter: C
Question
Check my work 7 Required information [The following information applies to the questions displayed below.) Buckley, an individual, began business two years ago and has never sold a 51231 asset. Buckley owned each of the Part 2 of3 assets since he began the business. In the current year, Buckley sold the following business assets: Accumulated eBook Asset Computers Machinery Furniture Building Original CostDepreciationGain/Loss $ (3,000) (2,000) $ 6,000 10,000 20,000 100,000 2,000 4,000 12,000 10,000 Print 7,000 (1,000) Assuming Buckley's marginal ordinary income tax rate is 35 percent, answer the questions for the following alternative scenarios: (Input all amounts as positive values.) b-1. Assume that the amount realized increased so that the building was sold at a $6,000 gain instead. What is the character of Buckley's gains or losses for the current year? Description Amount McExplanation / Answer
Asset
Gain/loss
Computer
(3,000)
Machinery
(2,000)
Furniture
7,000
Building
(1,000)
b-1) Building was sold @ $6,000 gain
Asset
Gain/loss
Computer
(3,000)
Machinery
(2,000)
Furniture
7,000
Building
6,000
Total gain
8,000
b-2) Buckley’s tax liability
8,000*35% =$2,800
C-1) Building was sold @ $15,000 gain
Asset
Gain/loss
Computer
(3,000)
Machinery
(2,000)
Furniture
7,000
Building
15,000
Total gain
17,000
C-2)Buckley’s tax liability
17,000*35%=$5,950
Asset
Gain/loss
Computer
(3,000)
Machinery
(2,000)
Furniture
7,000
Building
(1,000)