108. Comprehensive Problem. Mr. Trent transferred three apartment buildings to a new corporation in exchange for all its stock. The facts pertaining to the buildings were:Recapture PotentialBuilding Basis123$10,00015,00020,000Value$100,00080,00030,000Mortgage$60,00000SO5,0004,000a. What gains are realized and recognized on the transfer of each building? What is the character of the gains?b. What is the corporation's basis in each building?c. What is Mr. Trent's basis in his stock?

The gain in financial and tax contexts refers to the increase in the value of an asset or an income…

Answered: 08. Comprehensive Problem. Mr. Trent…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sub :AccountingPls answer very fast.I ll upvote. Thank You Peroni Corporation sold a parcel of land valued at $300,000. Its basis in the land was $250,000. For the land, Peroni received $150,000 in cash in the current year and a note providing Peroni with $150,000 in the subsequent year. What is Peroni's recognized gain in the current and subsequent year, respectively? Group of answer choices $0, $50,000 $10,000, $40,000 $25,000, $25,000 $50,000, $0 None of the choices are correct.
Emily and Frida are negotiating with George to purchase the business that he operates as Pelican, Inc. The assets of Pelican, a C corporation, include: Asset Basis FMV Cash $20,000 $20,000 Accounts receivable 50,000 50,000 Inventory 100,000 110,000 Furniture and fixtures* 150,000 170,000 Building** 200,000 250,000 Land 40,000 150,000 * The potential depreciation recapture under § 1245 is $45,000.** The straight-line method was used to depreciate the building. The balance in the accumulated depreciation account is $340,000. George's basis for the stock of Pelican is $560,000. George is in the 32% tax bracket. b. Assume that Emily and Frida purchase the assets from Pelican and that the purchase price is $908,000. Emily and Firda's basis in the assets in $750,000 and they will have goodwill with a basis on $158,000. Pelican's total recognized gain is $348,000, of which __________ is a…
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10. Calculate the assessed value (in $) and the property tax due (in $) on the property. (Round your answers to the nearest cent.) Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $342,900 72 $ 5.1% $
Question: Carlos bought a building for $113,000 in 2011. He added an addition to the building for $26,000. In 2015, he sold it for $212,000. What was his long-term capital gain? a. $212,000 b. $73,000 c. $47,000 d. $0 e. $99,000
Problem 1: Use the facts below to answer Problem 1 Questions 1-3 Evergreen Corporation, a calendar year, accrual basis taxpayer, requires a new piece of equipment for use in its manufacturing business. The company would like to determine whether it would be cost beneficial to invest in the equipment and has asked you to help with some of the calculations. The equipment will cost $100,000 and qualifies as a 3 year asset under the MACRS classification. Evergreen will purchase the equipment on January 1, 2019, use the equipment for 3 years, and sell it in October of 2021. Evergreen estimates that it could sell the equipment for $15,000 in 2021. Assume that bonus depreciation and the Sec. 179 expensing option are not available. Problem 1 Question 1: Calculate the total depreciation deductions Evergreen will take on the equipment for 2019, 2020, and 2021 assuming Evergreen sells the equipment in 2021. a. $68,520 b. $85,185 c. $90,739 d. $92,590
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