Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Bryce, a bank official, is married and files a joint return. During 2013 he engages in the following activities and transactions:
a. Being an avid fisherman, Bryce develops an expertise in tying flies. At times during the year, he is asked to conduct fly-tying demonstrations, for which he is paid a small fee. He also periodically sells flies that he makes. Income generated from these activities during the year is $2,500. The expense for the year associated with Bryce's fly-tying activity include $125 personal property taxes on a small trailer that he uses exclusively for this purpose, $2,900 in supplies, $270 in repairs on the trailer, and $200 in gasolinefor traveling to the demonstrations.

b. Bryce sells a small building lot to his brother for $40,000. Bryce purchased the lot four years ago for $47,000, hoping to make a profit.

c. Bryce enters into the following stock transactions: (None of the stock qualifies as small business stock.)

Date Transaction
March 22 Purchases 100 shares of Silver Corporation common stock for $2,800.
April 5 Sells 200 shares of Gold Corporation common stock for $8,000. The stock
was originally purchased two years ago for $5,000.
April 15 Sells 200 shares of Silver Corporation common stock for $5,400. The stock
was originally purchased three years ago for $9,400.
May 20 Sells 100 shares of United Corporation common stock for $12,000. The
stock was originally purchased five years ago for $10,000.

d. Bryce's salary for the year is $115,000. In addition to the items above, he also incurs $5,000 in other miscellaneous deductible itemized expenses. Assume that Bryce is not eligible for any other itemized deductions except listed in the problem (including the election to deduct sales and local sales taxes instead of state and local income taxes).

Answer the following problems regarding Bryce's activities for the year:
1. Compute Bryce's taxable income for the year.
2. What is Bryce's basis in the Silver he continues to own?

 

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M941697

Have any Question? 


Related Questions in Accounting Basics

Question 1the following transactions occurred during july o

Question 1 The following transactions occurred during July: o Received $900 cash for services provided to a customer during July. o Received $2,200 cash investment from Barbara Hanson, the owner of the business. o Receiv ...

Cvp analysis in service companies please respond to one of

"CVP Analysis in Service Companies" Please respond to one of the following: Option 1 Imagine that you are the cost accounting manager and the director of your present or past organization. Management wants your opinion o ...

Problem 1panda incs 10-k report contains the following

Problem 1 Panda Inc.'s 10-K report contains the following footnote relating to its leasing activities: At December 31, 2013, the company was committed to non-cancellable leases with remaining terms of one to 15 years. A ...

1 as a small business owner in todays economy what three

1. As a small business owner in today's economy, what three financial reports would you use on a regular basis? What information would you find on each statement? What decisions might each statement help you make? Please ...

1-15 multiple choice each multiple choice has only one

1-15. Multiple Choice Each multiple choice has only one correct answer. 1. Which of the following aspects of a company could be considered a critical success factor, given the appropriate business environment? A) cutting ...

Assignmentbackgroundyou are an audit senior for burns amp

Assignment Background You are an audit senior for Burns & Allen, LLP. One of the audit partners received a call from Brenda Parker, CFO of a publicly traded client, Toys For U ("Toys"). Toys is a retailer with 25 locatio ...

International accounting1 when discussing foreign currency

International Accounting 1. When discussing foreign currency exchange, there are several arrangements. List two of these. 2. A _________ is a contract between two or more parties. 3. What are the timelines for the new re ...

Accounting systems and assurance assessment internal

Accounting Systems and Assurance Assessment: Internal Control and information quality Accounting students learn how to process, analyse and use accounting information. It is also necessary to learn what contributes to th ...

Assignment change modelassume you are the sales and

Assignment Change Model Assume you are the Sales and Marketing Director for Sea Treasures, a small group of well-known retail stores specializing in exotic sea life and high-end accessories for aquariums. The company has ...

This assignment will assess the following learning

This assignment will assess the following learning outcomes: - Demonstrate the impact on the financial statements and the implication for different users of accounts of alternative ways of treating controversial accounti ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen