Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the activity is $200,000, and he uses the installment method of reporting the gain. The activity has suspended losses of $44,000. Alfonso receives $400,000 in the year of sale. a. What is his gross profit ratio on the sale? Enter as a percentage. For example, .35 would be entered as "35". % b. His recognized gain for the current year is $ . c. Alfonso can currently deduct $ of suspended losses.
Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the activity is $200,000, and he uses the installment method of reporting the gain. The activity has suspended losses of $44,000. Alfonso receives $400,000 in the year of sale. a. What is his gross profit ratio on the sale? Enter as a percentage. For example, .35 would be entered as "35". % b. His recognized gain for the current year is $ . c. Alfonso can currently deduct $ of suspended losses.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Alfonso sells a passive activity in the current year for $800,000. His adjusted basis in the activity is $200,000, and he uses the installment method of reporting the gain. The activity has suspended losses of $44,000. Alfonso receives $400,000 in the year of sale.
a. What is his gross profit ratio on the sale? Enter as a percentage. For example, .35 would be entered as "35".
%
b. His recognized gain for the current year is $
.
c. Alfonso can currently deduct $
of suspended losses.
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