Ansari Basketball Inc. had a player contract with Rodriguez that is recorded in its books at $3,500,000 on July 15, 2022. Delta Basketball Inc. had a player contract with Williams that is recorded in its books at $4,200,000 on July 15, 2022. On this date, Ansari traded Rodriguez to Delta for Williams and paid a cash difference of $800,000. The fair value of the Williams contract was $5,300,000 on the exchange date. The exchange had no commercial substance. After the exchange, the Williams contract should be recorded in Ansari's books at $ __? Help

Ansari Basketball Inc. had a player contract with Rodriguez that is recorded in its books at $3,500,000 on July 15, 2022. Delta Basketball Inc. had a player contract with Williams that is recorded in its books at $4,200,000 on July 15, 2022. On this date, Ansari traded Rodriguez to Delta for Williams and paid a cash difference of $800,000. The fair value of the Williams contract was $5,300,000 on the exchange date. The exchange had no commercial substance. After the exchange, the Williams contract should be recorded in Ansari's books at $ __? Help

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 10CE

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Marigold Football Co. had a player contract with Watts that is recorded in its books at $8350000 on July 1, 2020. Cullumber Football Co. had a player contract with Kurtz that is recorded in its books at $10750000 on July 1, 2020. On this date, Marigold traded Watts to Cullumber for Kurtz and paid a cash difference of $1075000. The fair value of the Kurtz contract was $12600000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Marigold's books at $9425000. $11825000. $12600000. $10750000.
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