Determine what are lily taxable income and tax liability

Assignment Help Managerial Accounting

Reference no: EM132720099

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business:

Asset         Sales Price            Cost Accumulated             Depreciation
Building       $230,000 $200,000    $52,000
Equipment 80,000    148,000    23,000

Lily's taxable income before these transactions is $160,500.

Problem 1: What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

Reference no: EM132720099

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