During the 2019 tax year, Kantz Inc. receives a loan for $100,000 and sells for $70,000 equipment...
Question:
During the 2019 tax year, Kantz Inc. receives a loan for $100,000 and sells for $70,000 equipment with an adjusted basis of $60,000.
Based on these facts, what is the company's gross income for the year? Show all work.
Calculating Taxable Amount
A taxpayer's taxable amount is equal to her gross income minus allowable For-AGI deductions and the standard deduction or itemized deductions, whichever are the highest.
Answer and Explanation: 1
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The gross income based on the given information is:
| Loan receipt - excluded from gross income | $0 |
| Gain on sale of depreciable asset = $70,000 -... |
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Income Tax Liability | Definition, Calculation & Deductions
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Learn what income tax liability is. Find out what taxable and adjusted gross income are, discover how to calculate tax liability, and examine common deductions.
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