answer in class 7-1
.pdf
keyboard_arrow_up
School
Johnson County Community College *
*We aren’t endorsed by this school
Course
131
Subject
Accounting
Date
May 9, 2024
Type
Pages
5
Uploaded by liz009090 on coursehero.com
See. 2024 In Class problems - matching problems in connect for HW cT 36. Amal received a Form 1099-DIV with a capital gain distribution of $210 and also a Form 1099-B from the sale of 240 shares of AMS stock purchased for $2,9 $28 commission fee on February 22, 2022. The net proceeds of the stock sale were $2,700 (the commisStonfee(was $14), and the trade date was February 22, 2023. What are the amount and nature of Amal’s gain (loss) on these transactions? Seled AMS - Strcic. —Sedd 2T00 2|22 |22 —> 2)22 ]33 Bass 29 2% She A ~ene 2287 Losg ST 37. Rayna bought an apartment building in July 2017 for $345,000 and sold it for $370,000 in July 2023. There was $75,272 of accumulated depreciation allowed on the apartment building. If Rayna is in the 35% tax bracket, how much of the gain is taxed at 25%? Sl 8700 — z@q‘?.zc? Bas:s (3¢s000 - 1§ 2.12) 160272 Gara _ - ¢ 15.777_7 Orck, ITne, Tax 24 > 4 e ——— e —————— 25,000 L7Cq ProA. 39. Renaldo, a s1ngle taxpayer has a W-2 showing income of $95,360. Renaldo also has a short-term cgpltal loss of $6,309, a short-term capital gain of $2,400, and a long-term cap1ta1 gain of $3,656. What is Renaldo’s AGT for 2023? or —p stcl 6309 >{3 qoa D ¢ 253y LTCL Srch 2zyd 0) ; - 7 Gs107 AGET (zs LTC LTCG 3lSP 40. In 2023, Ann received 1,000 shares of stock as a gift from Tim, who purchased them in 2014. At the time of the gift, the FMV of the stock was $29.300 and Tim’s basis was $3 1.000. If Ann sellsthe stock for $32,834 in 2023, what are the nature and amount of the gain from the sale? T——Gaun. FVW & Bans ¥ 32,839 W Z 31,000 Mo ; 1, R34 Qo LTCH 41.1In 2023, Ann received 1,000 shares of stock as a gift from Tim, who purchased them in 2014. At the time of the gift, the FMV of the stock was $29,300, and Tim’s basis was $31,000. If Ann sells the stock for $26,834 in 2023, what are the nature and amount of the loss from the sale? Wie - CLagyy a v ChHerso - 24,834 Ss\4 {29, 800) Fmv f’l‘q(‘.b Lesy ST -
Problems 42. Umair sold some equipment he used in his business on August 29, 2023, that was originally purchased for $65,000 on November 21, 2021. The equipment was depreciated using the 7-year MACRS method for a total of $17,249. Assume there is no additional netting of gains and losses for this taxpayer. G _ S 000 a. Assume Umair sold the equipmen $44,000: —~ 17,249 (1) What is the amount o 1g foss on the sale of the equipment? — (2) Is the nature of the gain or loss considered ordinary or long-term? “'_I, LRI 44 000 Ady. Rady Ly, s C3,171) Lsy g L Ocd. Liss ST b. Assume Umair sold the equipment for $50,000: (1) What is the amount of realized gain or loss on the sale of the equipment? (2) Is the nature of the gain or loss considered ordinary or long-term? SV 000 ek e (L © as\) 12 wg\_z 249 M&m Form4197 44. Haneen has taxable income of $126,000 without consideration of capital gain or loss transactions. Haneen has a short-term capital gain of $20,000, a long-term capital loss of $12,000, and a short-term capital gain of $7,000. Assume none of the gains or losses are from collectibles or unrecaptured §1250 property, and Haneen is in the 24% tax bracket. looo ST - 20,00 © a. What is the total short-ter loss 21006 B et Q2 ,000) . By ooo b. What is the total long-term gain QJ— 0 0) > c. What is the carryover amount? d. Is the gain or loss after netting taxed at the p1ta1 rate? A\ ST - 47. Joaquin purchased a $235,000 cfane for a construction business. The crane was sold for $175,000 after taking $115,000 of depreciation. Assume Joaquin is in the 35% tax rate bracket. 235 000 ] a. On what form would the gain or loss originally be reported? <474 115,000 D b. What is the amount of gain or loss on the sale? 1156t0 ~128,c00 = 95000"'"( ’a__c.) OO0 Ady. Bagay c. What amount of the gain or loss is subj ect to ordinary tax rates? Goun. A\ ord.\na - 8¢S
K 50. Saleh sold the following stock in 2023. ABC Inc., is a §1202 qualified small business (QSB). Asset Cost Acquired Sale Price Sale Date ‘ ¥ ABC, Inc. 200 shares $153,000 1/10/22 $200,000 . 4/3023 = 47,000 Gown LT DEF, Inc. 100 shares 24,600 11/15/19 14,000 212823 = (w, L OO oss LT GH]I, Inc. 50 shares 19,350 3/31/22° 17,000 8/30223 2 (2,30 ) |Lesy &T a. Complete the chart: , , é 2,930 LTcL Asset Amount of Realized | Amount of Recognized | IRC Section J Gain (Loss) in (Loss) I ABC (..(,“ 600 ’ ZS‘S—OO ’.2%’/ 3' 20 2. DEF Q0 Lo Clo (,00) 122\ - Cap Aot GHI (2/3s0) (2 350) $1aa1 — v | b. After netting, what is the total gain or loss? —=lo STO remoin “F e c. If Saleh is in the 37% tax rate bracket, at what rate is the net gain or loss taxed? ix /, fode, " 51. Kwan acquired a warehouse for business purposes on August 30, 2003. The building cost $420,000. Kwan took $227,600 of depreciation on the building and then sold it for $500,000 on July 1, 2023. What are the amount and nature of Kwan’s gain or loss on the sale of the warehouse? Y20 00O ), 0C a. What is the adjusted basis for the warehouse? (__4} z} 0 89? b. What amount of the gain or loss is realized on the sale of the warehouse? - q.L', Y40 O @ c. What amount of the gain or loss is unrecaptured? = 227600 Qepe. d. At what rate is the unrecaptured gain or loss taxed? > Q< /. e. What amount of the gain or loss qualifies as a § 1231 gain or loss? oY sna \ %0 00D (\QL_LPOC)) - — 207,00 () ( 221 ©ov) §1297 _ Leznwef)oT @ QUJQOO §13-3)
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Questions
To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020:
Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares.
20 - Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 - A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued.
31 - A stockholder received 2,000 preferred shares with a market value of P200
Feb. 8 - 300 treasury shares were sold for P45,000
20 - A shareholder paid P70,000 for 500 common shares.
28 - 5,000 preferred shares were redeemed at a price of P120 per share
Mar. 1 - 100 treasury shares were sold for P10,000.
Direction:
1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances.
2) Journal entries
3) Prepare the shareholders' equity…
arrow_forward
6.
On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities?
Group of answer choices
P280,000
P200,000
P400,000
P80,000
arrow_forward
On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause shareholder’s equity to decrease?Required to answer. Single choice.
arrow_forward
Mary Company’s pretax accounting income is $66,000 and has the following information:
Compensation expense for incentive stock options is $19,000.
Interest on municipal bonds is $11,000.
Unrealized gain on AFS securities is $1500.
Taxable income is
$66,000 + $11,000 + $19,000 - $1500.
$66,000 + $11,000 - $19,000 + $1500.
$66,000 - $11,000 + $19,000.
$66,000 - $11,000 - $19,000 .
arrow_forward
On January 2, 2020, Theodora Company purchased40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities?a. P400,000 c. P200,000b. P280,000 d. P 80,000
arrow_forward
NEED ASAP. Solve correctly and show your computations.
NXP Corporation issues P15 par value ordinary shares during 2021. The company received subscription from Mr. Navarro for 25,000 shares at P18 per share receiving 45% of the subscription price. On due date, Mr. Navarro failed to pay the balance of the subscription. The shares were subsequently declared delinquent and were advertised for sale at a public auction incurring P4,000 for advertising the sale. At the public auction, the company received bids from Mr. Pineda for 10,000 shares, Mr. De Torres for 9,000 shares, and Mr. Belen for 12,000 shares. The balance of the subscription price was outstanding for two months and was subject to 12% interest. How much cash was collected from the highest bidder?
arrow_forward
14. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. Compensation expense recorded in year 1 would be?
arrow_forward
2. On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause shareholder’s equity to decrease?
a. P700,000
b. P500,000
c. P200,000
d. P0
arrow_forward
Following is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020:
Investment
No. Shares
Cost
Fair Value
HFX Corporation
1,200
$9.00
$8.20
FDY Ltd.
2,100
6.50
6.55
CTN Corporation
3,700
7.00
7.60
On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
Jan. 15, 2021
(To adjust to current fair value)
(To record the sale of shares)
(Reclassification…
arrow_forward
On January 1, 2025, Splish Corporation granted 1,800 shares of restricted-stock units. The par value of the stock is $5 per share.
The market price (fair value) of the stock is $64 per share on the date of grant. The period of benefit is 2 years.
Prepare Splish's journal entries for December 31, 2025 and 2026. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts. Record journal entries in the order presented in the problem.)
Date
12/31/25
12/31/26
2/31/26
Account Titles and Explanation
Unearned Compensation
Paid-in Capital in Excess of Par-Common Stock
Compensation Expense
Unearned Compensation
(To record compensation expense)
Compensation Expense
Debit
0000
Credit
arrow_forward
On January 1, 2025, Splish Corporation granted 1,800 shares of restricted-stock units. The par value of the stock is $5 per share.
The market price (fair value) of the stock is $64 per share on the date of grant. The period of benefit is 2 years.
Prepare Splish's journal entries for December 31, 2025 and 2026. (List all debit entries before credit entries. Credit account titles are
automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
enter o for the amounts. Record journal entries in the order presented in the problem.)
Date
12/31/25
12/31/26
12/31/26
12/31/25
12/31/26
12/31/26
Account Titles and Explanation
Unearned Compensation
Paid-in Capital in Excess of Par - Common Stock
Compensation Expense
Unearned Compensation
(To record compensation expense)
Compensation Expense
Unearned Compensation
Paid-in Capital in Excess of Par - Common Stock
Compensation Expense
Unearned Compensation
(To record…
arrow_forward
At what amount should the investment be recorded initially?
2. On April 15, 2021, Pepper purchased 15,000 shares of Atty Group for P150,000. The
commission paid to the broker amounted to P8,500. Management made an irrevocable
choice to subsequently measure the shares at FVOCI.
At what amount should the investment be recorded initially?
arrow_forward
Pedantic Co. purchased 20,000 shares on 1 July 20x0, making the election to use the
alternative treatment under FVTOCI – IFRS 9. Given that each share costs $3.50. Transaction
costs of the purchase were $400.
At 31 December 20x0, the shares are trading at $5.0 each.
a. What is the carrying balance of this financial asset shown on statement of financial position
as at 31 December 20X0?
b. What is the gain to be recognised on these shares for the year ended 31 December 20X0?
Where to record this gain in statement of profit or loss and other comprehensive?
c. Assume that these shares were held for sales, what is the initial measurement of this
financial asset at 01 July 20x0? What should Pedantic Co record in statement of profit or
loss and other comprehensive income at the year ended 20X0?
arrow_forward
On December 1, 2020, Sakura Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause total shareholders’ equity to decrease?
arrow_forward
Which of the following sales can be reported directly on Schedule D?
1) Fabian received a Form 1099-B reporting stock sale proceeds of $2,157 and basis of $2,000.
2) Latisha received a Form 1099-B reporting stock sale proceeds of $4,892 and basis of $3,786. This sale requires an adjustment to the basis.
3) Christian received a Form 1099-B reporting stock sale proceeds of $5,497, basis of $4,450, and wash sale loss disallowed of $643.
4) Theo received a Form 1099-B reporting stock sale proceeds of $328 and no basis.
arrow_forward
Oriole Company owns 3100 of the 10000 outstanding shares of Skysong Corporation common stock. During 2021, Skysong earns $360000 and pays cash dividends of $141000.Oriole should report investment revenue for 2021 of
$111600.
$141000.
$67890.
$43710.
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Related Questions
- To continue in no. 13 (it is in the picture), assume the following transactions took place during 2020: Jan. 10 - One-half of the subscriptions receivable were collected and certificates of stock issued for 1,000 shares. 20 - Remaining subscriptions were declared delinquent and the corresponding chares put up for public auction. Advertising paid, P5,500. 25 - A bidder for 300 shares paid the amount due plus accrued interest of P750 and the corresponding certificates were issued. 31 - A stockholder received 2,000 preferred shares with a market value of P200 Feb. 8 - 300 treasury shares were sold for P45,000 20 - A shareholder paid P70,000 for 500 common shares. 28 - 5,000 preferred shares were redeemed at a price of P120 per share Mar. 1 - 100 treasury shares were sold for P10,000. Direction: 1) Prepare a table tracking down the movement of the stocks, one each for the preferred and common. Start with the December 31 balances. 2) Journal entries 3) Prepare the shareholders' equity…arrow_forward6. On January 2, 2020, Theodora Company purchased 40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities? Group of answer choices P280,000 P200,000 P400,000 P80,000arrow_forwardOn December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause shareholder’s equity to decrease?Required to answer. Single choice.arrow_forward
- Mary Company’s pretax accounting income is $66,000 and has the following information: Compensation expense for incentive stock options is $19,000. Interest on municipal bonds is $11,000. Unrealized gain on AFS securities is $1500. Taxable income is $66,000 + $11,000 + $19,000 - $1500. $66,000 + $11,000 - $19,000 + $1500. $66,000 - $11,000 + $19,000. $66,000 - $11,000 - $19,000 .arrow_forwardOn January 2, 2020, Theodora Company purchased40,000 shares of Byzantine, Inc. stock at P100 per share. Brokerage fees amounted to P120,000. A P5 dividend per share of Byzantine, Inc. shares had been declared on December 15, 2019, to be paid on March 31, 2020 to shareholders of record on January 31, 2020. The shares are designated as FVTOCI. On December 31, 2020 the investment has a fair value of P4,200,000. How much should be recognized in the 2020 other comprehensive income related to these securities?a. P400,000 c. P200,000b. P280,000 d. P 80,000arrow_forwardNEED ASAP. Solve correctly and show your computations. NXP Corporation issues P15 par value ordinary shares during 2021. The company received subscription from Mr. Navarro for 25,000 shares at P18 per share receiving 45% of the subscription price. On due date, Mr. Navarro failed to pay the balance of the subscription. The shares were subsequently declared delinquent and were advertised for sale at a public auction incurring P4,000 for advertising the sale. At the public auction, the company received bids from Mr. Pineda for 10,000 shares, Mr. De Torres for 9,000 shares, and Mr. Belen for 12,000 shares. The balance of the subscription price was outstanding for two months and was subject to 12% interest. How much cash was collected from the highest bidder?arrow_forward
- 14. A company grants 100 Share appreciation rights (SAR), payable in cash, to an employee on 1/1/Y1. The predetermined amount for the SAR plan is P50 per right, and the market value of the stock is P55 on 12/31/Y1, P53 on 12/31/Y2, and P61 on 12/31/Y3. Compensation expense recorded in year 1 would be?arrow_forward2. On December 1, 2019, Bobcat Corporation received a donation of 2,000 shares with P 50 par value from a shareholder. On that date, the share market value was P 350. The shares were originally issued for P 250 per share. By what amount would this donation cause shareholder’s equity to decrease? a. P700,000 b. P500,000 c. P200,000 d. P0arrow_forwardFollowing is a list of investments owned by Martinez Ltd., as of the company’s year-end, December 31, 2020: Investment No. Shares Cost Fair Value HFX Corporation 1,200 $9.00 $8.20 FDY Ltd. 2,100 6.50 6.55 CTN Corporation 3,700 7.00 7.60 On January 15, 2021, Martinez sold the shares in CTN Corporation for $8.10 per share. Prepare the journal entries required to record the sale, assuming the company uses the fair value through other comprehensive income without recycling method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 15, 2021 (To adjust to current fair value) (To record the sale of shares) (Reclassification…arrow_forward
- On January 1, 2025, Splish Corporation granted 1,800 shares of restricted-stock units. The par value of the stock is $5 per share. The market price (fair value) of the stock is $64 per share on the date of grant. The period of benefit is 2 years. Prepare Splish's journal entries for December 31, 2025 and 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date 12/31/25 12/31/26 2/31/26 Account Titles and Explanation Unearned Compensation Paid-in Capital in Excess of Par-Common Stock Compensation Expense Unearned Compensation (To record compensation expense) Compensation Expense Debit 0000 Creditarrow_forwardOn January 1, 2025, Splish Corporation granted 1,800 shares of restricted-stock units. The par value of the stock is $5 per share. The market price (fair value) of the stock is $64 per share on the date of grant. The period of benefit is 2 years. Prepare Splish's journal entries for December 31, 2025 and 2026. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem.) Date 12/31/25 12/31/26 12/31/26 12/31/25 12/31/26 12/31/26 Account Titles and Explanation Unearned Compensation Paid-in Capital in Excess of Par - Common Stock Compensation Expense Unearned Compensation (To record compensation expense) Compensation Expense Unearned Compensation Paid-in Capital in Excess of Par - Common Stock Compensation Expense Unearned Compensation (To record…arrow_forwardAt what amount should the investment be recorded initially? 2. On April 15, 2021, Pepper purchased 15,000 shares of Atty Group for P150,000. The commission paid to the broker amounted to P8,500. Management made an irrevocable choice to subsequently measure the shares at FVOCI. At what amount should the investment be recorded initially?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning