ACCT 429 Week 3 Assignment | Devry University
- Devry University / ACCT 429
- 20 Aug 2021
- Price: $5
- Accounting & Economics Assignment Help / Taxation
ACCT 429 Week 3 Assignment | Devry University
Week 3: Tax Form Computations (Property Transaction)
Property Transactions
for Week 3 (100 points) :TAX FORM COMPUTATION
Lorenzo is the sole proprietor of a trampoline shop. During
2019, the following transactions occurred.
1.
Unimproved land
adjacent to the store was condemned by the city on February 1. The condemnation
proceeds were $15,000. The land, acquired in 1986, had an allocable basis of
$40,000. Lorenzo has additional parking across the street and plans to use the
condemnation proceeds to build his inventory.
2.
A truck used to
deliver trampolines was sold on January 2 for $3,500. The truck was purchased
on January 2, 2014, for $6,000. On the date of sale, the adjusted basis was
zero.
3.
Lorenzo sold an
antique rowing machine at an auction. Net proceeds were $4,900. The rowing
machine was purchased as used equipment 17 years ago for $5,200 and is fully
depreciated.
4.
Lorenzo sold an
apartment building for $300,000 on September 1. The rental property was
purchased on September 1, 2015, for $150,000 and was being depreciated over a
27.5-year MACRS life using the straight-line method. At the date of sale, the
adjusted basis was $124,783.
5.
Lorenzo's personal
yacht was stolen on September 5. The yacht had been purchased in August at a
cost of $25,000. The fair market value immediately preceding the theft was
$19,600. Lorenzo was insured for 50% of the original cost, and he received
$12,500 on December 1.
6.
Lorenzo sold a Buick
on May 1 for $9,600. The vehicle had been used exclusively for personal
purposes. It was purchased on September 1, 2014, for $20,800.
7.
Lorenzo's trampoline
stretching machine (owned two years) was stolen on May 5, but the business's
insurance company will not pay any of the machine's value because Larry failed
to pay the insurance premium. The machine had a fair market value of $8,000 and
an adjusted basis of $6,000 at the time of theft.
8.
Lorenzo had AGI of
$102,000 from sources other than those described above.
9.
Lorenzo has no
non-recaptured § 1231 lookback losses.
For each transaction, what are the amount and
nature of recognized gain or loss?
What is Lorenzo's 2019 Adjusted Gross Income?
USA 
India