ADMS4561 Final Exam Question 3

Sol purchase lands as an investment on Jan 12, 2015 for $85,000. On Jan 31, 2019 Sold sold the land for $90,000 cash. What is the nature of the gain or loss?

Question 2 (150 word)                   Required: Showing workings, discuss Alex’s capital gain or loss for both houses (citing authority ). You are not required to discuss the application of the 50% CGT discount, or the impact of Division 43 of the ITAA 1997 . Alex inherits the following during February 2022 from his aunt: House A, which the aunt had purchased for $100,000 in January 1985. The aunt had used House A as a rental property for the full time she owned it. Its market value at the time of her death was $1 million. House B, which the aunt had purchased for $800,000 in 2010, and had used as a rental property for the full time she owned it. Its market value at the time of her death was $1.5 million. During the time Alex owned these 2 houses, he used both houses as rental properties. During May 2024, Alex made the following sales: House A was sold for $1.3 million House B was sold for $1.7 million

Job purchased land as an investment on January 12, 2018, for $80,000. On January 31, 2021, Job sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $62,000 on the land. What is the amount realized (not gain realized) on the sale of the land? a.$10,000 b.$23,000 c.$95,000 d.$103,000 e.None of these choices are correct.

Question 2 (150 word)                   Required: Showing workings, discuss Alex’s capital gain or loss for both houses (citing authority where appropriate). You are not required to discuss the application of the 50% CGT discount, or the impact of Division 43 of the ITAA 1997. Alex inherits the following during February 2022 from his aunt: House A, which the aunt had purchased for $100,000 in January 1985. The aunt had used House A as a rental property for the full time she owned it. Its market value at the time of her death was $1 million. House B, which the aunt had purchased for $800,000 in 2010, and had used as a rental property for the full time she owned it. Its market value at the time of her death was $1.5 million. During the time Alex owned these 2 houses, he used both houses as rental properties. During May 2024, Alex made the following sales: House A was sold for $1.3 million House B was sold for $1.7 million

Question: TaraTara owns a house that she has been living in for eight years. She purchased the house for $260,000 and the FMV today is $230,000. She is moving into her friend's house and has decided to convert her residence to rental property. Assume 10% of the property's value is allocated to land. Read the requirements: If she claims depreciation of $20,700 and sells the property, six years later for $275,000 (10% allocated to land), determine the gain on the sale of the building and gain on the sale of the land.

please dont provide answer in image format thank you   On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? Note: Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. a. Land sold for $32,000

what is the book value of the land

1. Candy purchased a 3 bedrooms house in St Kilda on the 1’s March 2015 for the cost of$1.3M. She paid a stamp duty on the transaction for $74,750. She also incurred legal fees of$3,500. She then rent the apartment out straight away for the amount of $30,000/year net.In the year of 2017, she renovated the kitchen and bathroom for the cost of $150,000 tomake the house looks more modern.Candy finally sold the house in November 2019 for $2.15M, incurring legal costs of $4,500and agent’s commission of $40,000.Candy also incurred interest on the amount borrowed to purchase the property of $120,000and council rates totalling $20,000Required:• Calculate the cost base for this asset• Calculate the capital gain or loss for the disposal of the asset• Calculate Candy’s assessable income for Income year 19/20 assuming she made a salaryof $90,000, net rental ncome of $30,000 an capital loss of $4,250 from the sale of someshares (purchased 10 years ago)• Would your answer will be different if Candy…

Problem 9-28 (LO. 2) On July 1, 2017, Brent purchases a new automobile for $40,000. He uses the car 80% for business and drives the car as follows: 8,000 miles in 2017, 19,000 miles in 2018, 20,000 miles in 2019, and 15,000 miles in 2020. Determine Brent's basis in the business portion of the auto as of January 1, 2021, under the following assumptions: If required, round answers to the nearest dollar. a. Brent uses the automatic mileage method. Compute his basis adjustments for depreciation for each year. Click here to access the basis adjustment table. 2017: $ 2018: $ 2019: $ 2020: $ Brent's adjusted basis in the auto on January 1, 2021, is $ Feedback b. Brent uses the actual cost method. [Assume that no § 179 expensing is claimed and that 200% declining-balance cost recovery with the half-year convention is used. The recovery limitation for an auto placed in service in 2017 is as follows: $3,160 (first year), $5,100 (second year), $3,050 (third year), and $1,875 (fourth year).]…

Jessie purchased land as an investment on January 12, 2016 for $80,000. On January 31, 2021, Jessie sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $70,000 on the land. What is the amount of the realized gain or loss on the sale? a.$10,000 loss b.$15,000 gain c.$23,000 gain d.$47,000 loss e.None of these choices are correct.

Please help with provide correct answer

Har

Hi expert please give me answer general accounting question

Hello tutor provide solution for this accounting question

Questions 60-65 are related to content from Section 9 of the Student Manual, "Settling the Real Estate Transaction," and its related textbook readings (Chapter 18). 60. A triplex is settled on June 15th. The school taxes of $1026, due July 1st of the previous year, are unpaid; the county taxes of $435, due January 1st, are paid. How much will the buyer net after all of the prorations? A. $973.25 B. $235.63 C. $747.62 D. $642.41 61. A buyer and a seller are in the process of negotiating a purchase agreement. Which of the following statements is true? A. The seller can require the buyer to obtain title insurance from a specific company. The title insurance company will then give the sellers a discount on the title insurance when they purchase a replacement residence. The term of the mortgage loan will probably be limited because the buyer is 75 years old. If the buyer accepts a mortgage loan through a company recommended by the seller's agent, the agent cannot receive a referral fee from…

Exercise 13-30 (Algorithmic) (LO. 3) Juliana purchased land three years ago for $55,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $77,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $69,300. a. Tom's basis in the land is s sale. and he has a realized of $ and he has a realized on the b. Assume, instead, that the land has a fair market value of $49,500 on the date of the gift, and that Tom sold the land for $47,025. Tom's basis in the land is s sale. on the

On 1 July 2019 Melissa acquired an antique Camel statue for $300 which she kept in the hallway of her house. 01 December 2020 she sold it for $4,300 Required Calculate the Net Capital Gain, if any, to be included as Melissa's assessable income for the year ending 30 June 2021 For all answers (unless otherwise indicated), please round your answer to the nearest dollar and use numerals only eg 9999 Answer: Check

During the year, ABC bought a parcel of land amounting to P 600,000 for speculation only. Months have passed, a hospital was constructed adjacent to his land with market value of P 2,600,000. A prospective buyer offered Ricky plus 6% capital gains tax as the purchase amount of the property. How much gain should be reported for tax purposes?