Question;6-57: Bryce, a bank official, is married and files a joint return. During 2013 he engages in the following activities and transactions:a. Being an avid fisherman, Bryce develops an expertise in tying flies. At times during the year, he is asked to conduct fly-tying demonstrations, for which he is paid a small fee. He also periodically sells flies that he makes. Income generated from these activities during the year is $2,500. The expense for the year associated with Bryce?s fly-tying activity include $125 personal property taxes on a small trailer that he uses exclusively for this purpose, $2,900 in supplies, $270 in repairs on the trailer, and $200 in gasolinefor traveling to the demonstrations.b. Bryce sells a small building lot to his brother for $40,000. Bryce purchased the lot four years ago for $47,000, hoping to make a profit.c. Bryce enters into the following stock transactions: (None of the stock qualifies as small business stock.)Date TransactionMarch 22 Purchases 100 shares of Silver Corporation common stock for $2,800.April 5 Sells 200 shares of Gold Corporation common stock for $8,000. The stockwas originally purchased two years ago for $5,000.April 15 Sells 200 shares of Silver Corporation common stock for $5,400. The stockwas originally purchased three years ago for $9,400.May 20 Sells 100 shares of United Corporation common stock for $12,000. Thestock was originally purchased five years ago for $10,000.d. Bryce?s salary for the year is $115,000. In addition to the items above, he also incurs $5,000 in other miscellaneous deductible itemized expenses. Assume that Bryce is not eligible for any other itemized deductions except listed in the problem (including the election to deduct sales and local sales taxes instead of state and local income taxes).Answer the following questions regarding Bryce?s activities for the year:1. Compute Bryce?s taxable income for the year.2. What is Bryce?s basis in the Silver he continues to own?
Paper#49781 | Written in 18-Jul-2015Price : $29