Respuesta :
1) Gain on the sale of Land is deducted from net income in the indirect method.
2) A decrease in accounts Receivable and Amortization of Patents is added to net income.
The correct option is B
Capital Gain Tax on the sale of property or land is determined on the basis of the nature of the capital gain. Long-term or short-term. While the STCG on the sale of immovable property is taxable at slab rates, the LTCG on the sale of immovable property is taxable at 20% with an indexation benefit.
Is gain on the sale of land an income?
The amount by which the proceeds from the sale of land exceeded the carrying amount of the land sold. It is reported as a non-operating or "other" item on a multiple-step income statement.
How do you calculate the gain on the sale of land?
Figuring Your Sale Basis and Taxes
To find your capital gain, subtract your original purchase price from the sale basis. That gain is subject to a 15 percent federal capital gains tax. Any accumulated depreciation would be taxed at 25 percent
Gain on the sale of Land is deducted from net income in the indirect method.
A decrease in accounts Receivable and Amortization of Patents is added to net income. The amount by which the proceeds from the gain a sale of land exceeded the carrying value of the land sold. On a multiple-step income statement, it is reported as a non-operating or "other" item.
How do you calculate the profit from the sale of land?
Calculating Your Sale Basis and Taxes
Subtract your original purchase price from your sale basis to calculate your capital gain. This gain is subject to a 15% federal capital gains tax. Any accumulated depreciation would be taxed at 25%.
The gain on the sale of land is deducted from net income using the indirect method.
A decrease in accounts Receivable and Amortization of Patents is added to net income.
The correct option is B
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