question archive Instructions Acc 3043 Chapter 11 Homework Spring 2021 Instructions Due Date: 2-Jan Possible Points 10 On the tab marked 'Schedule of Gains and Losses' complete the following steps
Instructions Acc 3043 Chapter 11 Homework Spring 2021 Instructions Due Date: 2-Jan Possible Points 10 On the tab marked 'Schedule of Gains and Losses' complete the following steps
Subject:BusinessPrice: Bought3
Instructions
| Acc 3043 | |
| Chapter 11 Homework | |
| Spring 2021 | |
| Instructions | |
| Due Date: | 2-Jan |
| Possible Points | 10 |
| On the tab marked 'Schedule of Gains and Losses' complete the following steps. Use the depreciation schedule provided to calculate the basis and accumulated depreciation for each asset disposed of. Do not edit the information in the depreciation schedule tab. | |
| 1 | For both book and tax purposes, calculate the realized gain or loss for each asset individually |
| 2 | Calcuate the total 1245 gain/(loss) and the total 1250 gain/(loss) |
| 3 | Calculate the depreciation recapture (if any) for each asset individually |
| 4 | Calculate the book to tax difference on the total gain or loss |
| Submit your completed excel file via Blackboard. | |
| List group members, if any, here: |
Depreciation Schedule
| Acc 3043 | |||||||||
| Chapter 11 Homework | |||||||||
| Spring 2021 | |||||||||
| Book | |||||||||
| Asset No. | Asset Description | Date in Service | Basis | Life | Bonus Depreciation | Beginning A/D | 2020 Depreciation | Ending A/D | |
| 1 | Building | 01.01.2016 | 950,000 | 10.00 | - 0 | ||||
| 2 | Land | 01.01.2016 | 300,000 | N/A | - 0 | ||||
| 3 | Furniture & Fixtures | 02.10.2017 | 75,000 | 10.00 | - 0 | ||||
| 4 | Computer Equipment | 02.10.2017 | 35,000 | 10.00 | - 0 | ||||
| 5 | Software | 03.15.2018 | 20,000 | 10.00 | - 0 | ||||
| 6 | Landscaping | 04.15.2018 | 15,000 | 10.00 | - 0 | ||||
| 7 | Furniture & Fixtures | 04.15.2019 | 80,000 | 10.00 | - 0 | ||||
| 8 | Industrial Machine | 07.20.2020 | 1,000,000 | 10.00 | - 0 | ||||
| 9 | Building | 07.21.2020 | 2,500,000 | 10.00 | - 0 | ||||
| 10 | Computer Equipment | 07.20.2020 | 30,000 | 10.00 | - 0 | ||||
| 11 | Furniture & Fixtures | 07.25.2020 | 27,000 | 10.00 | - 0 | ||||
| Total | 5,032,000 | - 0 | - 0 | - 0 | - 0 | ||||
| Tax | |||||||||
| Asset No. | Asset Description | Date in Service | Basis | Life | Bonus Depreciation | Beginning A/D | 2020 Depreciation | Ending A/D | |
| 1 | Building | 01.01.2016 | 950,000 | 39.00 | - 0 | ||||
| 2 | Land | 01.01.2016 | 300,000 | N/A | - 0 | ||||
| 3 | Furniture & Fixtures | 02.10.2017 | 75,000 | 7.00 | 37,500 | ||||
| 4 | Computer Equipment | 02.10.2017 | 35,000 | 5.00 | 17,500 | ||||
| 5 | Software | 03.15.2018 | 20,000 | 3.00 | 20,000 | ||||
| 6 | Landscaping | 04.15.2018 | 15,000 | 15.00 | 15,000 | ||||
| 7 | Furniture & Fixtures | 04.15.2019 | 80,000 | 7.00 | 80,000 | ||||
| 8 | Industrial Machine | 07.20.2020 | 1,000,000 | 7.00 | 1,000,000 | ||||
| 9 | Building | 07.21.2020 | 2,500,000 | 39.00 | - 0 | ||||
| 10 | Computer Equipment | 07.20.2020 | 30,000 | 5.00 | 30,000 | ||||
| 11 | Furniture & Fixtures | 07.25.2020 | 27,000 | 7.00 | 27,000 | ||||
| Total | 5,032,000 | 1,227,000 | - 0 | - 0 | - 0 | ||||
Schedule of Gains and Losses
| Acc 3043 | ||||||||
| Chapter 11 Homework | ||||||||
| Spring 2021 | ||||||||
| Book | ||||||||
| Asset No. | Asset Descriptions | Date of Sale | Date Acquired | Proceeds | Adjusted Basis | Gain/(Loss) on Sale | ||
| 1 | Building | 07.01.20 | 01.01.2016 | 500,000 | 475,000 | (340,353) | ||
| 2 | Land | 07.01.21 | 01.01.2016 | 750,000 | 300,000 | 450,000 | ||
| 4 | Computer Equipment | 07.01.22 | 02.10.2017 | 10,000 | 14,000 | 7,984 | ||
| 5 | Software | 07.01.23 | 03.15.2018 | 5,500 | 8,000 | (2,500) | ||
| 7 | Furniture & Fixtures | 07.01.24 | 04.15.2019 | 7,500 | 32,000 | (24,500) | ||
| Net Gain/(Loss) From Sale of Assets | 90,631 | |||||||
| Tax | Ordinary Income | |||||||
| Asset No. | Asset Descriptions | Date of Sale | Date Acquired | Proceeds | Adjusted Basis | Gain/(Loss) on Sale | Recapture | Capital |
| 1 | Building | 07.01.20 | 01.01.2016 | 500,000 | 840,353 | |||
| 2 | Land | 07.01.21 | 01.01.2016 | 750,000 | 300,000 | |||
| 4 | Computer Equipment | 07.01.22 | 02.10.2017 | 10,000 | 2,016 | |||
| 5 | Software | 07.01.23 | 03.15.2018 | 5,500 | - 0 | |||
| 7 | Furniture & Fixtures | 07.01.24 | 04.15.2019 | 7,500 | - 0 | |||
| Net Gain/(Loss) From Sale of Assets | - 0 | - 0 | - 0 | |||||
| Total 1245 Gain/Loss | - 0 | |||||||
| Total 1250 Gain/Loss | - 0 | |||||||
| Net Gain/(Loss) From Sale of Assets | - 0 | HINT: The two green cells need to be the same number. | ||||||
| Book to tax difference on total gain or loss |
