Total Sale Sales Depreciation Date Property Price Cost Claimed Jan. 30 A $ 4,000
ID: 2544334 • Letter: T
Question
Total
Sale
Sales
Depreciation
Date
Property
Price
Cost
Claimed
Jan. 30
A
$ 4,000
$ 8,000
$3,000
June 10
B
7,000
8,000
4,000
Dec. 10
C
15,000
15,000
3,000
For the current year, Corporation Z had $60,000 of taxable income from operations. It also sold depreciable assets to its 100% shareholder as follows:Total
Sale
Sales
Depreciation
Date
Property
Price
Cost
Claimed
Jan. 30
A
$ 4,000
$ 8,000
$3,000
June 10
B
7,000
8,000
4,000
Dec. 10
C
15,000
15,000
3,000
What is Z’s corporate income tax for the current year? A. $9,750 B. $11,250 C. $11,500 D. $14,000Explanation / Answer
SOLUTON :- calculation on gain on sale of property :-
jan 30:- 8000-3000=5000 ( written down value of property)
5000-4000=1000( loss on sale of property)
June 10:- 8000-4000=4000( written down value of property)
4000-7000=3000( gain on sale of property)
Dec 10:- 15000-3000=12000(written down value of property)
12000-15000=3000( gain on sale of property)
net gain on sale of assets = 3000+3000-1000=5000
# Corporate income tax of the company on taxable income of $65000 shall be as follows:-
$7500+(15000*25%)=$11250