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# Schedule D, Taxation

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Gabe sold his business for \$120,000 and transferred a building, FMV \$80,000, land FMV \$10,000; and furniture and fixtures, FMV \$30,000 and adjusted basis \$22,500.
What is the value of goodwill and ongoing concern?

An investment-use casualty loss is carried from Form 4684 to which line.
Schedule A, Itemized deductions. line 20
Schedule A, itemized deductions, line 28
Schedule D, Capital Gains and Losses, line 15
Form 1040, line 14

If married taxpayers file a joint return for all year involved in creating or deducting an NOL:
The full amount of the NOL is deducted based on the spouse's income that incurred the NOL
The full amount of the NOL is deducted based on combined income
Both of the above
None of the above

#### Solution Preview

1 - To calculate goodwill, we would take the cost of the acquisition or purchase minus the fair market value of the assets. The remainder is goodwill. In this case, 80,000 + 10,000 + 30,000 = 120,000. The sale price was also \$120,000, so the total amount of goodwill is zero. Ongoing concern is not a valid topic. There is no such ...

#### Solution Summary

This solution provides the correct answers to the taxation questions listed.

\$2.19

## Federal Taxation for Gorilla Corporation: capital gains, losses, carryback, carryover

During 2007, Gorilla Corporation has net short-term capital gains of \$90,000, net long term capital losses of \$570,000, and taxable income from other sources of \$1.5 million. Prior years' transactions included the following:

2003 Net short-term capital gains \$300,000
2004 Net long term capital gains \$120,000
2005 Net short term capital gains \$90,000
2006 Net long term capital gains \$210,000

A) How are capital gains and losses treated on Gorilla's 2007 tax return?

B)Determine the amount of the 2007 capital loss that is carried back to each of the previous years.

C) Compute the amount of capital loss carryover, if any, and indicate the years to which the loss maybe carried.

D) If Gorilla is a sole proprietorship, rather than a corporation, how would Leslie (the owner) report these transactions on her 2007 tax return?

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