Dontrell Sells a Building Used in His Business at a Gain

question 119

Multiple Choice

Dontrell sells a building used in his business at a gain of $20,000.The building was purchased in 2006,and $15,000 of depreciation had been deducted on the building to the date of sale.Dontrell's only other property transaction resulted in a $5,000 loss on the sale of equipment used in his business.Dontrell's marginal tax rate is 33% without considering these two transactions.As a result of these transactions
I.Dontrell will pay additional tax of $2,850.
II.Dontrell can only deduct $3,000 of the loss on the sale of the equipment and pays a tax of $3,750 on the sale of the building.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

Comprehend how to change cell appearance such as cell borders, colors, and applying specific number formats like currency.

Grasp the use of logical functions (IF, AND, OR, NOT) to make decisions within cells based on given criteria.

Understand Excel's spell check functionality and how to manage dictionary words.

Learn how to effectively apply number formats, including percentage, currency, and date formats.

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Definitions:

Merger

The combination of two or more companies into a single legal entity, typically to expand operations and take advantage of synergies.

Acquisition

The process of obtaining control of another corporation by purchasing or exchanging stock.

Contractual Adjustments

Changes made to the billed amounts of services provided, based on agreements or contracts between providers and payers.

Third-Party Payors

Entities (usually insurance companies or government programs) that pay for healthcare services on behalf of patients, rather than direct payments by patients.