Taxable Income, John and Ellen Brite are married and file a joint return. John owns an, Taxation

Taxable Income, Taxation

Assignment Help:

John and Ellen Brite are married and file a joint return. John owns an unincorporated specialty electrical lightning retail store, Brite-On had the following assets on January 1, 2011: Old store building purchased April 1, 1999 $100,000 Equipment ( 7-years recovery) purchased January 10, 2006 30,000 Inventory valued using FIFO method: 4,000 light bulbs $5/bulb Brite-On purchased a competitor''s store on March 1, 2011 for $107,000. The purchase price included the following: New store building $60,000 (FMV) Land 18,000 (FMV) Equipment(5-year recovery) 11,000 (FMV) Inventory:3000 light bulbs $6/bulb (cost) On June 30, 2011, Brite-On sold the 7-year recovery period equipment for $12,000. Brite- On leased a $30,500 car for $500/month beginning on January 1, 2011. The car is used 100% for business and was driven 14,000 miles during the year. Brite-On sold 8,000 light bulbs in august 2011 at a cost of $7/bulb. Brite- On had the following revenues (in addition to the sales of light bulbs) and additional expenses: Service revenues $64,000 Interest expenses on business loan 4000 Auto expenses (gas, oil, etc,) 3,800 Taxes and licenses 2,800 Salaries 24,000 John and Ellen also had some personal expenses: Medical bills $4,500 Real property taxes 3,800 Home mortgage interest 9,000 Charitable contribution (cash) 600 The Brites recived interest income on a bank saving account of $275. John and Ellen made four $5,000 quarterly estimated tax payments. For self-employment tax purposes, assume John spent 100% of his time at the store while Ellen spends no time at the store. Additional Facts: Equipment acquired in 2006: The Brites elected out of bonus depreciation and did not elect Sec. 179. Equipment acquired in 2011: The Brites elected Sec. 179 to expense the cost of the 5-year equipment but elected out of bonus depreciation. Lease inclusion rules require that Brite-On reduce its deductible lease expense by $15 Compute the Brite''s taxable income and balance due or refund for 2013

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

Taxable Income, Taxation

Related Discussions:- Taxable Income

RESIDENCE ND SOURCE, FOR THE RELEVANT INCOME YEAR, EILL STANNOS BE REGARDED...

Determine the total income effect, Given the below facts, what is the total...

Calculate fiduciary income, Jack Green established the Jackson Trust by a g...

Advanced tax, The Madison Restaurant was formed a S corporation at the end ...

Future value and interest rate, Describe the relationship between (i) futur...

1040 project, how much will it be for a 1040 project?

Income tax and investment calculator, Income Tax and Investment Calculator ...

What are tax free employment benefits ?, what are tax free employment benef...

Calculate the tax under capital cost allowance, Your firm purchased a line...

Online Exam, Hi Dear, could you do the online exam with me !! Thank you

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT