Question

if Johnsons marketing capital gain on the sale of its business was 479,ooo capital improvements were 227,000and he adjusted basis o the property was 976,000 what was the sales price

Answer 1

The sales price of Johnson's business was calculated to be $1,682,000, by adding the capital gain of $479,000, capital improvements of $227,000, and the adjusted basis of $976,000.

Step-by-step explanation:

To calculate the sales price of Johnson's business from the information given, one would use the formula for determining capital gains from the sale of an asset, where the capital gain is equal to the sales price minus the sum of the adjusted basis and capital improvements. In mathematical terms,

Sales Price = Capital Gain + Adjusted Basis + Capital Improvements

Given that Johnson's capital gain was $479,000, capital improvements were $227,000, and the adjusted basis of the property was $976,000, the calculation is as follows:

Sales Price = $479,000 + $976,000 + $227,000

Thus, the calculated sales price of the business is $1,682,000.