Please answer i correct format Company B and Firm W exchanged the following business real estate:FMVMortgageEquityRequired:Blackacre(exchanged by B)$ 439,000(109,750)$ 329,250Whiteacre(exchanged by W)$ 592,000(262,750)$ 329,250a. If B's adjusted basis in Blackacre was $263,400, compute B's realized gain, recognized gain, and basis in Whiteacre.b. If W's adjusted basis in Whiteacre was $118,400, compute W's realized gain, recognized gain, and basis in Blackacre.Complete this question by entering your answers in the tabs below.Required A Required BIf B's adjusted basis in Blackacre was $263,400, compute B's realized gain, recognized gain, and basis in Whiteacre.Realized gainAmount$ 481,600Recognized gain$0Basis$416,400

Step 1:Answer: Compute the Net Debt Relief:Net Debt Relief = Mortgage value of Firm W − Mortgage…

Answered: Company B and Firm W exchanged the…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 32P

See similar textbooks

Similar questions

Company B and Firm W exchanged the following business real estate: FMV Mortgage Equity Required: Blackacre (exchanged by B) $ 400,000 (100,000) Whiteacre (exchanged by W) $525,000 (225,000) $ 300,000 $ 300,000 a. If B's adjusted basis in Blackacre was $240,000, compute B's realized gain, recognized gain, and basis in Whiteacre. b. If W's adjusted basis in Whiteacre was $100,000, compute W's realized gain, recognized gain, and basis in Blackacre. Complete this question by entering your answers Required A Required B If B's adjusted basis in Blackacre was $240,000, compu recognized gain, and basis in Whiteacre. Realized gain Recognized gain Basis Amount
Alpesh
Viktor exchanges stock (adjusted basis $19,000, FMV $26,800) and real estate (adjusted basis $19,000, FMV $46,000) held for investment for other real estate to be held for investment. The real estate acquired in the exchange has a suggested FMV of $70,200. Required: a. What are Viktor's realized and recognized gain or loss? b. What is the basis of the acquired real estate? a a b. Realized gain No gain or loss Realized gain Realized loss Recognized gain Amount
Firm PO and Corporation QR exchanged the following business real estate: Marvin Gardens (exchanged by PO) $ 1,040,000 (715,000) 325,000 $ FMV Mortgage Equity $ Required A Required B Required: a. If PO's adjusted basis in Marvin Gardens was $403,000, compute PO's realized gain, recognized gain, and basis in Boardwalk. b. If QR's adjusted basis in Boardwalk was $78,000, compute QR's realized gain, recognized gain, and basis in Marvin Gardens. Boardwalk (exchanged Complete this question by entering your answers in the tabs below. Realized gain Recognized gain Basis $ by QR) 325,000 -0- 325,000 If PO's adjusted basis in Marvin Gardens was $403,000, compute PO's realized gain, recognized gain, and basis in Boardwalk. Amount
Sunny receives a property distribution from Cloudy Corp. The distributed property had a FMV of $5,000 and a basis of $2,000. Assume Cloudy Corp has positive E&P for the distribution. What is the gain to Cloudy Corp? What is the dividend to Sunny? What is the net adjustment to Cloudy Corp E&P
Business K exchanged an old asset (FMV $95,000) for a new asset (FMV $95,000). Business K's tax basis in the old asset was $113,000. Required: a. Compute Business K's realized loss, recognized loss, and tax basis in the new asset assuming the exchange was a taxable transaction. b. Compute Business K's realized loss, recognized loss, and tax basis in the new asset, assuming the exchange was a nontaxable transaction. c. Six months after the exchange, Business K sold the new asset for $103,000 cash. How much gain or loss does Business K recognize if the exchange was taxable? How much gain or loss if the exchange was nontaxable? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Business K's realized loss, recognized loss, and tax basis in the new asset assuming the exchange was a taxable transaction. Note: Losses should be indicated with a minus sign. Realized loss Recognized loss Tax basis Amount
Tesco Incorporated and WW Company exchanged like-kind assets. Tesco's asset had an $82,000 FMV and $55,900 adjusted tax basis, and WW's asset had an $85,500 FMV and a $27,200 adjusted tax basis. Tesco paid $8,500 cash to MW as part of the exchange. Calculate a) WW's and Tesco's realized and recognized gain b) WW's and Tesco's basis for newly acquired asset
OCD exchanged old realty for new like-kind realty. OCD’s adjusted basis in the old realty was $31,700 ($60,000 initial cost − $28,300 accumulated depreciation), and its FMV was $48,000. Because the new realty was worth only $45,000, OCD received $3,000 cash in addition to the new realty. Required: a-1. Compute OCD's realized gain. a-2. Determine the amount and character of any recognized gain. b. Compute OCD’s basis in its new realty.
Firm M exchanged an old asset with a $16,600 tax basis and a $39,000 FMV for a new asset worth $27,500 and $11,500 cash. Required: a. If the exchange is nontaxable, compute Firm M's realized and recognized gain and tax basis in the new asset. b. How would your answers change if the new asset were worth only $16,000, and Firm M received $23,000 cash in the exchange? Complete this question by entering your answers in the tabs below. Required A Required B If the exchange is nontaxable, compute Firm M's realized and recognized gain and tax basis in the new asset. Amount Realized gain Recognized gain Tax basis
Sissoon Inc exchanged a business asset for an investment asset Both assets had a $620,000 appraised FMV Sisoons book basis in the business asset was $518,900 and it's tax basis was $443,400. Compute Sissoons book and tax gain if the business asset and investment asset were like-kind properties for tax purposes Determine Sissoons book and tax basis of the investment asset acquired in the non taxable exchange properties for tax purposes. compute Sissoons book and tax gain if the business asset and investment asset were not like king properties for tax purposes. Determine Sissoon's book and tax basis of the investment asset aquired in the taxable exchange.
Firm M exchanged an old asset with a $11, 500 tax basis and a $29, 000 FMV for a new asset worth $ 22,500 and $6,500 cash. Required: If the exchange is nontaxable, compute Firm M's realized and recognized gain and tax basis in the new asset. How would your answers change if the new asset were worth only $ 11,000, and Firm M received $18,000 cash in the exchange?
Russell Corporation sold a parcel of land valued at $425,000. Its basis in the land was $297,500. For the land, Russell received $101,250 in cash in year 0 and a note providing that Russell will receive $226,000 in year 1 and $97,750 in year 2 from the buyer. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is Russell's realized gain on the transaction? b. What is Russell's recognized gain in year 0, year 1, and year 2?

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Essntl Tax Individ/Bus Entities 2020

Accounting

ISBN:

9780357391266

Author:

Nellen

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Corp Partner Estates Trusts

Accounting

ISBN:

9780357161548

Author:

Raabe

Publisher:

Cengage

SEE MORE TEXTBOOKS