Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022,...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2022, she sells the following long-term assets used in her business:
Asset
Sales Price
Cost
Accumulated Depreciation
Building
$ 234,200
$ 204,200
$ 56,200
Equipment
84,200
152,200
27,200
Lily's taxable income before these transactions is $194,700. What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.
2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over:
But not over:
The tax is:
$ 0
$ 10,275
10% of taxable income
$ 10,275
$ 41,775
$1,027.50 plus 12% of the excess over $10,275
$ 41,775
$ 89,075
$4,807.50 plus 22% of the excess over $41,775
$ 89,075
$ 170,050
$15,213.50 plus 24% of the excess over $89,075
$ 170,050
$ 215,950
$34,647.50 plus 32% of the excess over $170,050
$ 215,950
$ 539,900
$49,335.50 plus 35% of the excess over $215,950
$ 539,900
$162,718 plus 37% of the excess over $539,900
Description
Amount
Taxable income
Tax liability
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
