Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6 1.) Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income? 2.) Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?

Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6 1.) Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income? 2.) Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 28P

See similar textbooks

Similar questions

Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6. a. Assuming Bourne reported $50,000 of nonrecaptured net §1231 losses during years 1–5, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
[The following information applies to the questions displayed below.] Bourne Guitars, a corporation, reported a $232,000 net §1231 gain for year 6. a. Assuming Bourne reported $58,500 of nonrecaptured net §1231 losses during years 1-5, what amount of Bourne's net §1231 gain for year 6, if any, is treated as ordinary income? Bourne's gain treated as ordinary income
For current year, S Corporation had a net short-term loss of $20,000. Its operating income excluding the capital loss was $100,000. What is the tax treatment of the $20,000 net capital loss?
Bourne Guitars, a corporation, reported a $232,000 net §1231 gain for year 6. b. Assuming Bourne's nonrecaptured net §1231 losses from years 1-5 were $248,000, what amount of Bourne's net §1231 gain for year 6, if any, is treated as ordinary income? Bourne's gain treated as ordinary income
Bourne Guitars, a corporation, reported a $251,000 net §1231 gain for year 6. Problem 3-51 Part-b (Algo) b. Assuming Bourne's nonrecaptured net §1231 losses from years 1–5 were $292,000, what amount of Bourne's net §1231 gain for year 6, if any, is treated as ordinary income?
Bourne Guitars, a corporation, reported a $220,000 net $1231 gain for year 6. a. Assuming Bourne reported $61,250 of nonrecaptured net $1231 losses during years 1-5, what amount of Bourne's net $1231 gain for year 6, if any, is treated as ordinary income? Bourne's gain treated as ordinary income
10. Bourne Guitars, a corporation, reported a $157,000 net §1231 gain for year 6. b. Assuming Bourne’s nonrecaptured net §1231 losses from years 1–5 were $200,000, what amount of Bourne’s net §1231 gain for year 6, if any, is treated as ordinary income?
Lanco Corporation, an accrual-method corporation, reported taxable income of $1,720,000 this year and paid Federal income tax of $361,200. Included in the computation of taxable income were the following items: • MACRS depreciation of $253,000. Depreciation for earnings and profits purposes is $124,000. • A net capital loss carryover of $13,700 from last year. • A net operating loss carryover of $31,000 from last year. $76,750 capital gain from the distribution of land to the company's sole shareholder (see below). Not included in the computation of taxable income were the following items: • Tax-exempt income of $8,600. • Life insurance proceeds of $267,000. • Excess current-year charitable contribution of $2,300 (to be carried over to next year). • Tax-deferred gain of $21,300 on a like-kind exchange. • Nondeductible life insurance premium of $4,700. • Nondeductible interest expense of $3,600 on a loan used to buy tax-exempt bonds. . Lanco's accumulated E&P at the beginning of the…
Burcham Corporation reported pretax book income of $600,000. The depreciation exceeded book depreciation by $400,000. In addition, the company received $300,000 of tax-exempt municipal bond interest. The company’s prior year tax return showed taxable income of $50,000. Compute the company’s book equivalent of taxable income. Use this number to compute the company’s total income tax provision or benefit.
Petrilli Ltd. had a taxable loss of $3,600,000 in 20X8 and a further loss of $140,000 in 20X9. The tax rate in 20X8 was 32% and in 20X9, 33%. All rates are enacted in the year to which they pertain. In the three years before the losses, the company had the following taxable income and tax rates: 20X5 20X6 20X7 Taxable income $ 1,267,200 $ 1,368,000 $ 488,400 Tax rate 36 % 38 % 40 % There are no temporary differences other than those created by income tax losses. The company was struggling due to a competitor entering the market. Required:1. What is the amount of refund that will be claimed in 20X8? 2. What is the amount of the loss carryforward in 20X8? 3. Assuming that loss carryforward usage is probable in each year, prepare a journal entry for income tax in 20X8 and 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 4. Assuming that loss carryforward usage is not probable in…
Grand Corporation reported pretax book income of $612,000. Tax depreciation exceeded book depreciation by $408,000. In addition, the company received $306,000 of tax-exempt municipal bond interest. The company's prior-year tax return showed taxable income of $51,000. Compute the company's current income tax expense or benefit. (Leave no answer blank. Enter N/A or zero.) 이 Current income tax Deferred income tax N/A expense $
Petrilli Ltd. had a taxable loss of $3,600,000 in 20X8 and a further loss of $140,000 in 20X9. The tax rate in 20X8 was 32% and in 20X9, 33%. All rates are enacted in the year to which they pertain. In the three years before the losses, the company had the following taxable income and tax rates: 20X5 20X6 20X7 Taxable income $ 1,267,200 $ 1,368,000 $ 488,400 Tax rate 36 % 38 % 40 % There are no temporary differences other than those created by income tax losses. The company was struggling due to a competitor entering the market. Assuming that loss carryforward usage is not probable in each year, prepare a journal entry for income tax in 20X8 and 20X9. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the entry in loss year 20X8 when the provision is not met. Record the entry in loss year 20X9 when the provision is not met.