Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. part b omg is in a country which has a capital gai

Part B OMG is in a country which has a capital gains tax,...

90.2K

Verified Solution

Question

Accounting

Part B
OMG is in a country which has a capital gains tax, conducted the following transactions:
a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company
spent $2,000,000 to install solar panels for electricity in the building. The building was
sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of
advertising the sale of the building and the legal fees amounted to $1,500,000.
b. A motor vehicle was purchased for $5 million on January 1,2018. The vehicle was sold
in 2021 for $4.5 million.
c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for
$10 million.
d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.
The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January
2021 were $1,500,000.
Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
image

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!
Become a Member

Other questions asked by students

Biology
1.2K views

A frame shift mutation a. can lead to a longer protein b. can lead to a shorter...

Basic Math
1.2K views

There are 3 coins which when flipped come up heads, respectively, with probabilities 1/4, 1/2, 3/4....

Biology
1.2K views

Part 1 Identify the structures in the images using the Mold Structures drawings provided Choose...

Basic Math
1.2K views

Perform the indicated calculation 5 2 5 5 in Z

Basic Math
1.2K views

List all the ways to select two different members from S without repetition The order...

Basic Math
1.2K views

Graph of the function f(x) = logi (x). You can only graph integer points, for...

Calculus
1.2K views

Let h(x) = (5 - 2x - 6x?)/x?Determine the derivative of h.h'(x) = ________Determine the...

Accounting
1.2K views

Barber Company produces 2,500 units. Each unit was expected to require 2 labor hours at...

Accounting
1.2K views

21. Calculate the acid-test (quick) ratio for the past two years. Did the acid-test ratio...

Accounting
1.2K views

All of the following refer to the competence of the internal audit function except: 1)...

Accounting
1.2K views

Calculating the Variable Overhead Spending and Efficiency Variances Standish Company manufactures consumer products and provided...

Accounting
1.2K views

Pregunta 19 Una persona fue de compras y compr un total de $74.50 en comestibles....