2022-10-25

How do I find the tax basis?

Required information [The following information applies to the questions displayed below.] Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Cash Receivables Building Land Total Payables Mortgage* Total FMV $ 28,800 17,600 Adjusted Tax Basis $ 28,800 Appreciation 17,600 145,600 252,000 72,800 84,000 $ 444,000 $ 203,200 72,800 168,000 $ 240,800 $ 21,600 126,800 $ 21,600 126,800 $ 148,400 $ 148,400 * The mortgage is attached to the building and land. Ernesto was asking for $546,100 for the company. His tax basis in the BLI stock was $163,000. Included in the sales price was an unrecognized customer list valued at $148,000. The unallocated portion of the purchase price ($102,500) will be recorded as goodwill. Note: Negative amounts…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.)     FMV Adjusted Tax Basis Appreciation Cash $ 6,000 $ 6,000   Receivables 9,000 9,000   Building 114,000 57,000 57,000 Land 248,000 78,000 170,000 Total $ 377,000 $ 150,000 $ 227,000         Payables $ 11,000 $ 11,000   Mortgage* 134,000 134,000   Total $ 145,000 $ 145,000     * The mortgage is attached to the building and land. Ernesto was asking for $574,000 for the company. His tax basis in the BLI stock was $190,000. Included in the sales price was an unrecognized customer list valued at $190,000. The unallocated portion of the purchase price…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Cash Receivables Building Land Total Payables Mortgage Total FMV $ 28,500 20,400 127,000 233,250 $ 409,150 Gain or loss recognized $ 24,200 174,800 Adjusted Tax Basis $ 26,500 20,400 63,500 77,750 $190,150 $ 24,200 174,800 $ 199,000 $ 199,000 Appreciation 63,500 155,500 $ 219,000 *The mortgage is attached to the building and land. Ernesto was asking for $496,950 for the company. His tax basis in the BLI stock was $146.000. Included in the sales price was an unrecognized customer list valued at $189,000. The unallocated portion of the purchase price ($97,800) will be recorded as goodwill. Note: Negative amounts should be indicated by a minus sign. Problem 19-57 Part b (Algo) b. What…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company’s tax accounting balance sheet. The relevant information is summarized as follows: Note: Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.   FMV Adjusted Tax Basis Appreciation Cash $ 10,000 $ 10,000   Receivables 15,000 15,000   Building 100,000 50,000 50,000 Land 225,000 75,000 150,000 Total $ 350,000 $ 150,000 $ 200,000         Payables $ 18,000 $ 18,000   Mortgage* 112,000 112,000   Total $ 130,000 $ 130,000   * The mortgage is attached to the building and land. Ernesto was asking for $400,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV Adjusted Basis AppreciationCash$25,500 $25,500 Receivables 23,200 23,200 Building 133,000 66,500 66,500Land 272,250 90,750 181,500Total$453,950 $205,950 $248,000 Payables$23,000 $23,000 Mortgage* 150,000 150,000 Total$173,000 $173,000     * The mortgage is attached to the building and land. Ernesto was asking for $568,950 for the company. His tax basis in the BLI stock was $148,000. Included in the sales price was an unrecognized customer list valued at $196,000. The unallocated portion of the purchase price ($92,000) will be recorded as goodwill. (Negative amounts should be indicated by a minus sign.)

Dengar

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV   Adjusted Basis   Appreciation Cash $ 14,500   $ 14,500       Receivables   18,800     18,800       Building   102,500     51,250     51,250 Land   260,250     86,750     173,500 Total $ 396,050   $ 171,300   $ 224,750                   Payables $ 19,100   $ 19,100       Mortgage*   159,000     159,000       Total $ 178,100   $ 178,100           * The mortgage is attached to the building and land.  Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV   Adjusted Basis   Appreciation Cash $ 14,500   $ 14,500       Receivables   18,800     18,800       Building   102,500     51,250     51,250 Land   260,250     86,750     173,500 Total $ 396,050   $ 171,300   $ 224,750                   Payables $ 19,100   $ 19,100       Mortgage*   159,000     159,000       Total $ 178,100   $ 178,100           * The mortgage is attached to the building and land.  Ernesto was asking for $445,700 for the company. His tax basis in the BLI stock was…

Ashvin

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: 24,200 Adjusted Tax Basis $ 24,000 Appreciation Cash FMV $ 24,000 Receivables 24,200 Building 112,000 56,000 56,000 Land 238,500 79,500 159,000 Total $ 398,700 $ 183,700 $ 215,000 Payables Mortgage* $ 25,600 128,300 $ 25,600 128,300 Total $ 153,900 $ 153,900 *The mortgage is attached to the building and land. Ernesto was asking for $504,100 for the company. His tax basis in the BLI stock was $144,000. Included in the sales price was an unrecognized customer list valued at $183,000. The unallocated portion of the purchase price ($76,300) will be recorded as goodwill. Note: Negative amounts should be indicated by a minus sign. a. What amount of gain or loss does BLI recognize if the…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Note: Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign. Cash Receivables Building Land Total Payables Mortgage Total FMV 12,000 19,000 77,000 165,000 $ 273,000 $ 22,000 87,000 $ 109,000 Adjusted Tax Basin $ 12,000 19,000 38,500 105,000 $ 174,500 Gain or loss recognized Corporate-level tax $ 22,000 87,000 $ 109,000 Appreciation 38,500 60,000 $ 98,500 *The mortgage is attached to the building and land. Ernesto was asking for $402,000 for the company. His tax basis in the BLI stock was $100,000. Included in the sales price was an unrecognized customer list valued at $100,000. The unallocated portion of the purchase price ($138,000)…

Vishnu

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows:     FMV   Adjusted Basis   Appreciation Cash $ 16,000   $ 16,000       Receivables   17,500     17,500       Building   102,000     51,000     51,000 Land   249,000     83,000     166,000 Total $ 384,500   $ 167,500   $ 217,000                   Payables $ 24,300   $ 24,300       Mortgage*   110,250     110,250       Total $ 134,550   $ 134,550           * The mortgage is attached to the building and land.  Ernesto was asking for $482,700 for the company. His tax basis in the BLI stock was $192,000. Included in the sales price was an unrecognized customer list valued at $132,000. The unallocated portion of the purchase price ($100,750) will be recorded as…

[ine Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: • Cash Receivables Building Land Total Payables Mortgage* Total FMV $ 29,000 17,300 Adjusted Tax Basis $ 29,000 Appreciation 17,300 124,500 62,250 295,500 98,500 $ 466,300 $ 207,050 62,250 197,000 $ 259,250 $ 21,400 161,000 $ 182,400 $ 21,400 161,000 $ 182,400 The mortgage is attached to the building and land. Ernesto was asking for $500,650 for the company. His tax basis in the BLI stock was $114,000. Included in the sales price was an unrecognized customer list valued at $117,000. The unallocated portion of the purchase price ($99,750) will be recorded as goodwill. Note: Negative amounts should be indicated by a minus sign. Problem 19-57 Part a (Algo) a. What amount of gain…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: Cash Receivables Building Land Total Payables Mortgage* Total FMV $ 14,000 21,000 94,000 204,000 $333,000 $ 25,000 $ 25,000 108,000 108,000 $133,000 $133,000 Adjusted Basis $ 14,000 Gain or loss recognized Corporate-level tax 21,000 47,000 74,000 $156,000 Show Transcribed Text The mortgage is attached to the building and land. Ernesto was asking for $470,000 for the company. His tax basis in the BLI stock was $150,000. Included in the sales price was an unrecognized customer list valued at $150,000. The unallocated portion of the purchase price ($120,000) will be recorded as goodwill. (Leave no answer blank. Enter zero if applicable.) Assume Ernesto agrees to sell his stock in BLI to Amy…

How do I find the recognized gain or loss and the corporate-level tax?

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Inc. (BLI).  As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet.  The relevant information is summarized as follows:                           PMV                  Adjusted Bais              Appreciation Cash                 $14,000             $14,000 Receivables      $19,100              $19,100 Building            $130,000            $65,000                       $65,000 Land                 $247,500            $82,500                      $165,000 Total                  $410,600           $180,600                    $230,000 Payables            $23,900             $23,900 Mortage*            138,000              $138,000 Total                   $161,900             $161,900 *The mortage is attached to the building and land Ernesto was asking for $535,450 for the company.  His tax basis is in the…

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: (Leave no answer blank. Enter zero if applicable. Negative amounts should be indicated by a minus sign.) Ad justed Tax Basis $ 6,000 9,000 56,500 139,000 $ 210,500 PMV Appreciation Cash Receivables Building $ 6,000 9,000 113,000 239,000 ६ 367,000 56,500 100,000 $ 156,500 Land Total Payables Mortgage $ 12,000 132,000 $ 144,000 $ 12,000 132,000 $144,000 Total * The mortgage is attached to the building and land. Ernesto was asking for $493,000 for the company. His tax basis in the BLI stock was $150,000. Included in the sales price was an unrecognized customer list valued at $150,000. The unallocated portion of the purchase price ($120,000) will be recorded as goodwill. Assume Ernesto…

Gadubhai

Kk.218.

Amy and Brian were investigating the acquisition of a tax accounting business, Bottom Line Incorporated (BLI). As part of their discussions with the sole shareholder of the corporation, Ernesto Young, they examined the company's tax accounting balance sheet. The relevant information is summarized as follows: \table[[,,Adjusted Tax,],[Cash,\table[[FMV],[$10,500

Please help me

Kk.323.