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Moab Inc, manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations 30 that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. (Do not round Intermediate computations) a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8.000 in depreciation b. Moab Inc. held stock in ABC Corp, which had a value of $12.000 at the beginning of the year. That same stock had a value of $15.230 at the end of the year c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000, d. Moab Inc, disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55.000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and has taken $15,000 in depreciation e. Moab Inc. sold some land held for investment for $28.000. It originally bought the land for $32,000 two years ago Moab Inc. sold another machine for a note payable in four annual installments of $12,000. The first payment was received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9.000 in depreciation expense against the machine g. Monb Inc. sold stock it held for eight years for $2.750. It originally purchased the stock for $2,100. h. Moab Inc. sold another machine for $7.300. It originally purchased this machine six months ago for $9.000 and has claimed $830 in depreciation expense against the asset. Comprehensive Problem 11-71 Part (1) and (2) Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be $1231. capital, or ordinary 2. From the recognized gains/losses determined in part 1 determine the ret 1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Inc. also has 52,000 of nonrecaptured net 51231 losses from previous years. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Determine the gain/los realized and recognized in the current year for each of these events provided above. Also determine whether the Gairloss recognized will be $1231. capital, or ordinary. ( Lamounts should be indicated by a minus sign) Ar OL Recogid 1945 On 231 Ordinan 1221 Income home OL Orda ta th tc 10 10 th 5 03 5 OS Moab Inc, manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations 30 that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. (Do not round Intermediate computations) a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8.000 in depreciation b. Moab Inc. held stock in ABC Corp, which had a value of $12.000 at the beginning of the year. That same stock had a value of $15.230 at the end of the year c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000, d. Moab Inc, disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55.000 and $20,000 in cash. It originally bought the office building seven years ago for $62,000 and has taken $15,000 in depreciation e. Moab Inc. sold some land held for investment for $28.000. It originally bought the land for $32,000 two years ago Moab Inc. sold another machine for a note payable in four annual installments of $12,000. The first payment was received in the current year. It originally bought the machine two years ago for $32,000 and has claimed $9.000 in depreciation expense against the machine g. Monb Inc. sold stock it held for eight years for $2.750. It originally purchased the stock for $2,100. h. Moab Inc. sold another machine for $7.300. It originally purchased this machine six months ago for $9.000 and has claimed $830 in depreciation expense against the asset. Comprehensive Problem 11-71 Part (1) and (2) Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be $1231. capital, or ordinary 2. From the recognized gains/losses determined in part 1 determine the ret 1231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Inc. also has 52,000 of nonrecaptured net 51231 losses from previous years. Complete this question by entering your answers in the tabs below. Reg1 Reg 2 Determine the gain/los realized and recognized in the current year for each of these events provided above. Also determine whether the Gairloss recognized will be $1231. capital, or ordinary. ( Lamounts should be indicated by a minus sign) Ar OL Recogid 1945 On 231 Ordinan 1221 Income home OL Orda ta th tc 10 10 th 5 03 5 OS Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be $1231, capital, or ordinary 2. From the recognized gains/losses determined in part 1, determine the net 51231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Inc. also has $2,000 of nonrecaptured net 91231 losses from previous years. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be $1231, capital, or ordinary. (loss amounts should be indicated by a minus sign.) Realized Gain (Los) Recognized $1245 Ordinary $291 Ordinary Gainilos) Income Income 1231 Ordinary Gain (LON) Income (Loss) Capital Gain (LO) ta 1b 10 1d 10 19 Totals $ $ O $ $ 0 $ 0 $ 0 $ 0 Reg 1 Reg 2 > Required: 1. Determine the gain/loss realized and recognized in the current year for each of these events provided above. Also determine whether the gain/loss recognized will be $1231, capital, or ordinary 2. From the recognized gains/losses determined in part 1, determine the net 61231 gain/loss, the net ordinary gain/loss, and the net capital gain/loss Moab will recognize on its tax return. Moab Inc. also has $2,000 of nonrecaptured net 51231 losses from previous years. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 From the recognized gains/losses determined in part 1, determine the net 91231 gain/loss, the net ordinary gain/loss, and the net capital gain/lons Moab will recognize on its tax return. Moab Inc. also has $2,000 of nonrecaptured net $1231 losses from previous years. (Loss amounts should be indicated by a minus sign.) 51231 Netting Process: 51231 gain 51231 loss Net 61231 gain Nonrecaptured 51231 losses Net 61231 gain Ordinary Income: 51245 recapture 5291 recapture Ordinary income Ordinary loss Ordinary income from $1231 netting Total Caprial Guins and Losses: Capital gain Capitalous Net capital gain Reg1 R2

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