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On January 12, 2013, Mr. and Mrs. Nixon moved out of their old residence (where they had lived for 22 years) and into a new residence purchased nine days earlier on January 3. They finally sold their old residence on June 7, 2013, for a $278,000 realized gain.
a. How much gain did they recognize on sale of their old residence?
b. On February 26, 2015, Mr. and Mrs. Nixon sold their new residence for a $48,000 realized gain and moved into a nearby house with a swimming pool. How much gain did they recognize?
c. How much gain did they recognize if they sold the new residence because Mrs. Nixon accepted a job in a different state, and the family had to relocate?
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Evening Story Corporation has sales of $4,732,270; income tax of $558,166; the selling, general and administrative expenses of $264,444; depreciation of $328,532; cost of goods sold of $2,840,400; and interest expense of $153,129. Calculate the amoun..
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