Unrecaptured Sec. 1250 Gain and 1231. Mr. Briggs purchased an apartment complex on
January 10, 2011, for $2 million with 10% of the price allocated to land. He sells the
complex on October 22, 2013, for $2.5 million. Assume that 10% of the $2.5 million
selling price is allocated to land and 90% is allocated to the building.
a. How much depreciation was allowed for 2011?
b. How much depreciation is allowed for 2013?
c. Will any of the gain be ordinary income?
d. What is the amount of gain and the character of the gain on the sale of the building?
e. What is the amount of gain and the character of the gain on the sale of the land?
f. Will any of the gain be taxed at 25%?
Help please
36
Crystal Corporation has the following information regarding its common stock: $10 par, with 500,000 shares authorized, 213,000 shares issued, and 183,700 shares outstanding. On August 22, 2013, Crystal declared and paid a 15% stock dividend when the market price of the common stock was $30 per share.
Required:
1. Prepare the journal entries to record declaration and payment of this stock dividend.
2. Prepare the journal entries to record declaration and payment assuming it was a 30% stock dividend