Answer:
Tax Liability = $59,170
Explanation:
Profit on building = 234,000-(204,000-56,000)
Profit on building = $86,000
Loss on equipment = 84,000 - (152,000-27,000)
Loss on equipment = $41,000
Net profit = Profit on building - Loss on equipment
Net profit = $86,000 - $41,000
Net profit = $45,000
Taxable income before transaction = $194,500
Total taxable income = $194,500 + $45,000
Total taxable income = $239,500
According to tax rules
Tax Liability = ($194,500 - $85,650)28% + 17,442 + ($45,000 )(25%)
Tax Liability = $47,920 + $11,250
Tax Liability = $59,170
