c. wnat amount of the gain or 1oss IS subject to orainary tan raicBrantley owns an automobile for personal use. The adjusted basis is $19,500, and the FMV is $16,000. Assume Brantley has owned the automobile fa. Respond to the following if Brantley sells the vehicle for S16,000.(1). What is the amount of realized gain or loss on the sale?(2). What is the amount Brantley will recognize on his Form 1040?Respond to the following if Brantley sells the vehicle for $20,000.(1). What is the amount of realized gain or loss on the sale?(2). What is the amount Brantley will recognize on his Form 1040?

In order to know the gain or loss, one has to take the difference between the FMV and adjusted…

Answered: c. wnat amount of the gain or 1oss IS…

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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Accounting 1. Sally has the following for 2021: a $12,000 § 1245 gain a $38,000 § 1231 gain a $36,000 § 1231 loss a $2,000 § 1231 lookback loss a $18,000 long-term capital gain a $3,500 long-term capital loss. a. Determine her ordinary gain or loss amount for 2021. Enter an absolute amount. b. Determine her LTCG or LTCL amount for 2021. Enter an absolute amount. 23. Molly exchanges a rental building, which has an adjusted basis of $625,000, and FMV of $715,000 for another rental house which has a fair market value of $565,000. She also receives $150,000 in cash. What is the recognized gain or loss the new rental house?
A2
1 Suppose the taxpayer received $35,000 in cash, a ring worth $3,000 and the buyer assumed the seller's note. a. What is the amount realized? b. What is the adjusted basis of the property? c. What is the gain on the sale of the property?
Vijay
A26.
Sarah exchanges a building and land (used in its business) for Tyler's land and building and some equipment (used in its business). The assets have the following characteristics: Adjusted Basis Fair Market Value Sarah's real property $3,600 $9,000 Tyler's real property 1,800 7,200 Equipment 1,620 2,700 a. What are Sarah's recognized gain or loss and basis for the land and building and equipment acquired from Tyler? Her adjusted basis in the land and building she acquired from Tyler is $ Her recognized is $ and her adjusted basis in the equipment is $ b. What are Tyler's recognized gain or loss and basis for the land and building acquired from Sarah? is $ Tyler's recognized and his adjusted basis in the land and building he acquired from Sarah is
Subject: acounting
Jack and Jill exchange like-kind real estate assets as listed below: Jack's old asset: FMV $50,000; Adjusted Taxable Basis $23,000 Jill's old asset: FMV $70,000; Basis $55,000 If Jack pays Jill cash of $20,000 plus Jack's old asset, how much gain must Jill recognize on this transaction? $5,000 $10,000 $15,000 $20,000
Problem 13-74 (a) (LO. 6) Rodriquez owns real estate (adjusted basis of $57,000 and fair market value of $65,000), which he uses in his business. Rodriquez sells the real estate for $65,000 to Jones (a dealer) and then purchases a new parcel of land for $65,000 from Franklin (also a dealer). The new parcel of land would normally qualify as like-kind property. a. What are Rodriquez's realized and recognized gain on the sale of the land he sold to Jones? On the sale of real estate, Rodriquez's realized gain is $ and recognized gain is $ b. Rodriquez's basis for the land he purchased from Franklin is $ c. Indicate whether the following statements are "True" or "False" regarding what would motivate Rodriquez to sell his land to Jones and purchase the land from Franklin rather than exchange one parcel of land for the other. • If Rodriquez sells the parcel of land, the sale would have resulted in the realized gain being postponed. • If Rodriquez sells the parcel of land, the recognition of…
Terry owns land that serves as security for a $50,000 mortgage held by Key Bank. When Terry's tax basis is the land was $15,000 and the land's fair market value was $40,000, Key Bank forecloses on the land and takes title in full satisfaction of the mortgage balance. Which of the following statements is correct? a. If the mortgage is recourse, Terry must recognize gain on the foreclosure but no income from the discharge of indebtedness. b. If the mortgage is nonrecourse, Terry must recognize gain on the foreclosure but no income from the discharge of indebtedness. c. Terry only recognizes income from the discharge of indebtedness if the land was used in a trade or business. d. If the mortgage is nonrecourse, Terry must recognize gain on the foreclosure and income from the discharge of indebtedness. None of the above e.
Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market value of $160,000 for a rental house at the mountains with a fair market value of $148,000 and cash of $12,000. What is Angela’s recognized gain or loss? Group of answer choices $148,000 ($20,000) $12,000 $0
Which of the following taxpayers would be most likely to benefit from an installment sale? (a) Allan. He sold a business-use car at a net gain that was less than the amount of depreciation claimed. (b) Kayla. She sold business-use land for a gain. (c) Marie. She sold property she had held in inventory in her business at a net gain. (d) Robert. He sold a fishing boat at a net loss.

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