Omega Corporation sold the following property on March 3 of the current year:Aside from these

ACC 455 Entire Course Link

https://uopcourses.com/category/acc-455/

 

 Omega Corporation sold the following property on March 3 of the current year:Aside from these transactions, Omega had $750,000 of operating net income during the current year. Omega has a $15,000 nonrecaptured Sec. 1231 loss from prior years.

Requirement

Determine the character of the gains and losses, and calculate the corporation's taxable income. Ignore the U.S. production activities deduction.

Begin by calculating the total depreciation recapture, if any. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero.)

 
 
 
 
 
 
Total depreciation recapture
 
Next, calculate the remaining net Sec. 1231 gain, if any. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero. Use parentheses or a minus sign to enter loss and recapture amounts.)

 
 
 
 
 
 
 
 
 
 
Remaining net Sec. 1231 gain
 
Finally, indicate the character of the gains and losses and calculate the corporation's taxable income. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero.)

Income from operations
 
 
Income from recapture
 
 
Gain/Loss on sale of property
 
 
Taxable income
 
 
 
Powered by