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Question: shimmer inc is a calendaryearend accrualmethod corporation this year it...

Question details

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

Building $697,000 $675,000 $49,500

Sparkle Corporation stock 191,000 264,000 n/a

Shimmer does not sell any other assets during the year, and its taxable income before these transactions is $886,000.

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.)

Taxable Income?

Tax liability?

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answers $884,500 and $185,745 are incorrect!!!!

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