Homework Answers
a) Parking lot will be considered as Capital asset assuming that the same is integral part of the Business for XYZ Corporation and the same would be taxed at capital gains rate under section 1250
b) Land held as an Investment will be considered as Capital asset and the same would be taxed at capital gains rate.
c) An Automobile will be considered as Capital asset and the same would be taxed at capital gains rate
d) The Truck will be owned by the Contractor will be considered as Section 1231 asset and the same would be taxed at lower capital gain tax rate versus the ordinary income
e) If the Office building is integral part of the accounting practice business of Leslie, the same would be treated as capital asset and will taxed at capital gains rate
f) The computer owned by Yvonne will be considered as Section 1231 asset and the same would be taxed at lower capital gain tax rate versus the ordinary income
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2 POINTS (6) Indicate whether each of the following assets are capital assets, Sec. 1231 assets, or ordinary income...
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Account
1.
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select one from the following: Insurance Expense or Land or
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See attached tax form links below:
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
https://www.irs.gov/pub/irs-pdf/f4562.pdf
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Benedict Company incurred the following costs. Indicate to which
account Benedict would debit each of the costs.
No.
Transactions
Account
1.
Sales tax on factory
machinery purchased
$ 5,000
select one from the following: Insurance Expense or Land or
Buildings or Equipment or Architect’s Fees or Tax Expense or
Repairs and Maintenance Expense or Advertising Expense or Land
Improvements or Prepaid Insurance
2.
Painting of and lettering on
truck immediately upon purchase
700
select
one from the following: Insurance Expense...
Use the information provided below to Prepare Schedule C and
Form 4562 for tax year 2017.
Prepare Schedule C and Form 4562 for tax year 2017 using above
information and the forms below
See attached tax form links below:
https://www.irs.gov/pub/irs-pdf/f1040sc.pdf
https://www.irs.gov/pub/irs-pdf/f4562.pdf
Hints: total depreciation is $19,931 and net profit (line 31) is
$101,465. Do not worry if you are a few dollars off due to
rounding.
Also, calculate the self-employment tax on this income. The
taxpayer does not have any...
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