Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:...
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Accounting
Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:
| Asset | Sales Price | Cost | Accumulated Depreciation |
| Building | $750,000 | $741,000 | $51,500 |
| Sparkle Corporation stock | 167,000 | 238,000 | n/a |
|
| |||
Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $896,000.
What are Shimmer's taxable income and tax liability for the year? (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change.)
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