1. In 2020, Chris sold a painting to Bernie for $40,000. Chris received $10,0õ0 in 2020 and will receive $30,000 in 2021. Chris bought the painting in 2016 for $15,000. Bernie did not pay Chris $30,000 when it was due, and after numerous attempts to collect (and $1,000 in expenses), Chris repossessed the paining in 2021. The painting was worth $45,000 when repossessed. "What is Chris's recognized gain in 2020? a. $25,000 b. $10,000 c. $6,250 What are the results of the repossession to Chris? a. $45,000 LTCG; basis = $45,000 b. $33,750 LTCG; basis = $45,000 c. $33,750 LTCG; basis = $44,000 d. $32.750 LTCG: basis = $45.000

1. In 2020, Chris sold a painting to Bernie for $40,000. Chris received $10,0õ0 in 2020 and will receive $30,000 in 2021. Chris bought the painting in 2016 for $15,000. Bernie did not pay Chris $30,000 when it was due, and after numerous attempts to collect (and $1,000 in expenses), Chris repossessed the paining in 2021. The painting was worth $45,000 when repossessed. "What is Chris's recognized gain in 2020? a. $25,000 b. $10,000 c. $6,250 What are the results of the repossession to Chris? a. $45,000 LTCG; basis = $45,000 b. $33,750 LTCG; basis = $45,000 c. $33,750 LTCG; basis = $44,000 d. $32.750 LTCG: basis = $45.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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