Negasonic Teenage Warhead has a $40,000 § 1245 gain, a $35,000 § 1231 gain, a $33,000...

Negasonic Teenage Warhead has a $40,000 § 1245 gain, a $35,000 § 1231 gain, a $33,000 § 1231 loss, a $3,000 § 1231 lookback loss, and a $15,000 long-term capital gain. After conducting the appropriate netting process (please show your work), how much gain or loss will Negasonic report and what is the character of that gain or loss?

Expert Solution

Particulars	Amount
1231 gain	35,000
1231 loss	(33,000)
1245 gain	40,000
Net 1231 gain	42,000
Less look back recapture	(3,000)
Net 1231 gain for the year	39,000

Ordinary income due to look back rule is $3,000.

	Particulars	Amount
	Net 1231 gain for the year	39,000
Add	Long-term capital gain	15,000
	net long-term capital gain	54,000

Note: first 1231 gains and losses are netted together, to which 1245 gains are added. From that 1231 look back amount is treated as ordinary income and the balance as long-term capital gain.

ekkarill92 answered 1 year ago

In the current year, Alan reported a $104,925 net §1231 gain and a $4,000 net capital...

In the current year, Alan reported a $104,925 net §1231 gain and a $4,000 net capital loss. Assuming Alan reported $53,500 of nonrecaptured §1231 losses during the prior 5 years, what amount of Alan's net §1231 gain for the current year, if any, is treated as ordinary income?

In the current year, Alan reported a $104,950 net §1231 gain and a $4,000 net capital...

In the current year, Alan reported a $104,950 net §1231 gain and a $4,000 net capital loss. Assuming Alan reported $54,000 of nonrecaptured §1231 losses during the prior 5 years, what amount of Alan's net §1231 gain for the current year, if any, is treated as ordinary income? Multiple Choice $50,950. $104,950. $54,000. None of the choices are correct. $0.

Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Ac

Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Accumulated depreciation—equipment 20,000 Advertising Expense 4,500 Bonds payable, due December 31, 2024 260,000 Buildings 180,000 Capital stock, $1 par value 220,000 Cash 92,120 Commission Expense 8,400 Cost of Goods Sold 31,480 Depreciation Office 2,970 Equipment 75,500 Income Tax Expense 7,150 Income taxes payable 3,860 Insurance Expense Sales Auto 3,200 Interest Expense 1,550 Interest payable...

34) During the current year, LaVone recognizes a $30,000 Sec. 1231 gain on sale of land...

34) During the current year, LaVone recognizes a $30,000 Sec. 1231 gain on sale of land and a $18,000 Sec. 1231 loss on the sale of land. Prior to this, LaVone's only Sec. 1231 item was a $14,000 loss six years ago. LaVone must report a A) $12,000 net LTCG. B) $12,000 ordinary income. C) $14,000 ordinary income. D) $10,000 ordinary income and $2,000 net LTCG. 35) Sec. 1231 property will generally have all the following characteristics except A) real...

An investor has just purchased bonds for $35,000 that have a par value of $40,000, eight years remaining to maturity

An investor has just purchased bonds for $35,000 that have a par value of $40,000, eight years remaining to maturity, and a coupon rate of 14 percent. It expects the required rate of return on these bonds to be 11 percent three years from now.a. At what price could the investor sell these bonds three years from now?b. What is the expected annualized yield on the bonds over the next three years, assuming they are to be sold in three...

A B C D E Sales Revenue 40,000 75,000 580,000 35,000 ...

A B C D E Sales Revenue 40,000 75,000 580,000 35,000 55,000 Cost of Goods Sold 19,000 50,000 270,000 19,000 30,000 Operating Expenses 10,000 40,000 235,000 12,000 18,000 Identifiable Assets 35,000 80,000 500,000 65,000 50,000 After conducting all of the applicable segment tests on the above information provided, which segments are reportable?

Duc sold various assets during the year. Asset 1 one generated a $13,000 1231 gain, asset...

Duc sold various assets during the year. Asset 1 one generated a $13,000 1231 gain, asset 2 a $15,000 1231 loss, and asset 3 a $6,000 unrecaptured 1250 gain. Additionally, Duc had $1,000 of recaptured net 1231 losses from the prior 5 years. What is (are) the amount (s) and character (s) of gain and loss from these transactions? a. $1,000 unrecapured 1250 gain, $1,000 unrecaptured 1250 gain, $2,000 net 1231 gain. b. $1,000 ordinary income, $3,000 long-term capital gain...

a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of...

a. Titan Inc had net income of $300,000, Depreciation expense of $35,000, gain on sale of equipment $11,000, and provided the following information for 2029: 2019 2018 Accounts receivable 52,000 18,000 Prepaid insurance 20,000 30,000 Accounts payable 35,000 11,000 Taxes payable 8,000 29,000 Wages payable 49,000 5,000 Using the indirect method, how much was Titan's net cash provided by operating activities? b. On April 1, 2017, Titan Inc. 6% annual interest-bearing note payable for $60,000. The note has a maturity...

Perrymore reports the following items related to the statement of cash flows: Net loss $35,000 Gain...

Perrymore reports the following items related to the statement of cash flows: Net loss $35,000 Gain on sale of equipment $17,000 Purchase of equipment $26,200 Depreciation expense $49,000 Increase in accounts receivable $3,500 Increase in income tax payable $8,600 Cash received from sale of bonds $86,000 What amount would Perrymore report for "Cash from operating activities"?

how would I prepare a classfied balance sheet with this ? Accounts payable $ 40,000 Gain on...

how would I prepare a classfied balance sheet with this ? Accounts payable $ 40,000 Gain on sale of equipment X $ 2,000 Accounts receivable 50,000 Income tax expense X 5,000 Accumulated depreciation - building 10,000 Inventory 100,000 Additional paid-in capital 800,000 Interest expense X 4,000 Allowance for uncollectible accounts 5,000 Land 200,000 Bonds payable, due in 2029 800,000 Note payable, due 10/1/20 100,000 Building 641,000 Preferred stock 300,000 Cash 1,500,000 Prepaid insurance 5,000 Common stock 500,000 Rent expense X 10,000 Cost...

Question