Question: shimmer inc is a calendaryearend accrualmethod corporation this year it...
Shimmer Inc. is a calendar-year-end, accrual-method corporation. This year, it sells the following long-term assets:
|Asset||Sales Price||Cost||Accumulated Depreciation|
|Sparkle Corporation stock||138,000||246,000||n/a|
Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $820,000.
What are Shimmer's taxable income and tax liability for the year? (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change.)