Question

Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. This year, she sells the following long-term assets used in her business:Asset Sales Price Cost Accumulated Depreciation Building $230,000 $200,000 $52,000 Equipment 80,000 148,000 23,000 Lily's taxable income before these transactions is $160,500.What are Lily's taxable income and tax liability for the year? Use Tax Rate Schedule for reference. (Do not round intermediate calculations.

Answer 1

Answer:

Taxable income = $ 197500

Total liability = $ 47650

Explanation:

Please see attachment

Answer 2

Sole proprietorship is known to be as the enterprise which is basically owned by a given one natural person and Lily taxable income is given as $160,500.

What is Accumulated Depreciation ?

The Accumulated depreciation is known to be as the depreciation which is the total value of a given asset actually been Depreciated into a single point which is recorded in the Contra asset account side.

Hence the Lily taxable income is $227500 and the taxable liability is $51225 The image to the Lily Taxable income and Tax liability is attached below.

Learn more about Accumulated Depreciation here:

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