Ted, a sole proprietor, sells his office building to Sam. He originally purchased the building for $340,000. As of the date of the sale, Ted had recorded $140,000 of accumulated depreciation. His building was worth $240,000. Sam paid Ted $190,000 cash. In addition, Ted still owes $50,000 on debt incurred to purchase the building, and Sam is assuming this liability. Ted also paid a $5,000 commission to his realtor for facilitating the sale. What is Ted’s amount realized and what is Ted’s recognized gain or loss on the sale to Sam?
. Ted, a sole proprietor, sells his office building to Sam. He originally purchased the building for $340,000. As of the date of the sale, Ted had recorded $140,000 of
2. On May 15, 2019, Diane received a gift of 100 shares of stock from Fred. Fred had acquired the stock in 1990 for $20,000. At the time of the gift, the fair market value of the stock was $50,000. On November 30, 2019, Diane sold the stock for $52,000. What is the amount and character of Diane’s recognized gain or loss on the sale?
3. In the current year, Debbie receives stock as a gift from her uncle, Jerry. Jerry had originally purchased the stock for $27,000 several years ago. At the time of the gift, the fair market value of the stock is $17,000. One month later Debbie sells the stock for $16,500. What is the amount and character of Debbie’s recognized gain or loss from the sale?
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