Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $146,600 each. Dexter's basis in each lot sold is $102,620, and he incurs total selling expenses of $5,864 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $fill in the blank 1, of which $fill in the blank 2 is classified as ordinary income and$fill in the blank 3 as a capital gain.   Feedback Area     Feedback

Q: Pantone Corporation is a calendar year taxpayer. Dave owns one-third (100 shares) of Pantone stock.…

A: A dividend is a fee paid to the shareholders of a company. It is used by businesses to distribute…

Q: What are the tax consequences to Merle and Ned? Would Ned recognize any gain if he sold the stock…

A: a. Merle realizes a loss of $15,000 $26,000 (amount realized) - $40,000 (adjusted basis)] Which is…

Q: Madalyn, an individual and cash basis taxpayer, owns 70% of the stock of Kihei Corporation, a…

A: This section mention about the disallowance of certain deductions and credits when there is a…

Q: Clara received from her Aunt Sona property with an FMV at the date of the gift of $40,000. Aunt Sona…

A: Aunt Sona gifted a property to Clara Fair Market Value on date of gift = $40000 The property was…

Q: a. Gain from sale of building for regular income tax purposes b. Gain from sale of building for AMT…

A: a. Gain for Regular Income Tax Purposes:                                   Gain…

Q: The Liu Trust is short of cash. It is required to distribute $100,000 to Yang every year, and that…

A: A few things must first be understood in order to approach this problem: DNI or distributable net…

Q: in her current - year gross income. Which of the following form(s) the basis for this treatment? I.…

A: I. Capital Recovery Concept: No income is realized until the amount invested has been recovered.The…

Q: What amount is included in the sibling's net income for tax purposes from the sale of the land?| $…

A: Given information is: H sold land to his sibling for $200,000. The land is used for farming and at…

Q: Rachelle owned land with a basis of $200,000, subject to a mortgage of $125,000.  She exchanged the…

A: Lets understand the basics. When tranaction qualified for like kidn excghange treatment then gain…

Q: For three years, Ron owned a vacation home that had a fair market value of $240,000. On June 1, Ron…

A: When a taxable property is purchased on instalments for the entire purchase amount or a part of it,…

Q: Aram’s taxable income before considering capital gains and losses is $81,000. Determine Aram’s…

A: Since you posted a question with multiple sub-parts, we will solve the first three sub-parts for…

Q: Juliana purchased land three years ago for $79,300. She made a gift of the land to Tom, her brother,…

A: First, calculate the realized capital gain for Tom's basis:a. Tom's basis on land is $79,300 (as the…

Q: A taxpayer disposed of two homes in Ontario in 2021, (both of which met the qualifications of a…

A: A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450…

Q: What income, if any, must Karen recognize as a result of her purchase

A: Receipt of Virtual Currency as a Gift: The IRS treats virtual currency as property. When Karen…

Q: Each of the items listed below was incurred by José, the cash basis, calendar year decedent. Under…

A: Item Incurred Form(s) Reported on a. Wages (last paycheck received after the date of death) Form…

Q: Carl owns property with an assessed value of $72,450. If the tax rate is 6.82% of the assessed…

A: Income tax: Income tax is a tax levied on an individual’s income (taxable income). It is a direct…

Q: Sven operates a shop. During the 2020 tax year, he had on hand: $70,000 of trading stock on 1 July…

A: The profitability status of the company can be arrived from the income statement prepared by the…

Q: Tom Cruiser is buying a single-family residence in Oakvile, Ontario, for $805,000. According to the…

A: Taxable income: It is the income on which tax is calculated that is to be paid to the government and…

Q: Michael, single, had the following capital gains: Gain from the sale of an art collection $8,000…

A: Gain on art collection is taxable at 28% = 8,000 x 28% = 2,240

Q: Ms. Kona owns a 10 percent interest in Carlton LLC. This year, the LLC generated $72,400 ordinary…

A: Solution:- 1)Computation of the tax cost on Ms. Kona’s share of Carlton’s income assuming that she…

Q: Using the following independent situations, answer the following questions: Situation # 1 Clara…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: In 200A, Mr. Rosario acquired his principal residence for P6,000,000. He sold it to Mr. Dela Cruz…

A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…

Q: Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer…

A: It is the amount of tax that a taxpayer owes to the government on his taxable income. The tax…

Q: Aram's taxable income before considering capital gains and losses is $80,000. Determine Aram's…

A: Taxable income is the income earned from all source and capital gains are as part of taxable income.

Q: 00 cash plus accrued interest. Gi burse and assesses a finance cha

A: Fair market value refers to the monetary value of an asset at which the asset will be sold in the…

Q: Joe and John intend to enter into a like-kind exchange of real property qualifying for tax treatment…

A: Section 1031 of the Internal Revenue Code states:The real estate purchased with the proceeds must be…

Q: Anisa owns a rental house that generated a ($11,000) loss this year. Anisa does not meet the…

A: Correct option is a. The full ($11,000) loss is deductible.

Q: Ms. , non-resident alien not engaged in business, sold her residential house for P4,000,000. Its…

A: The tax on the property, which is sold either by the resident or by the non-resident, is the 6% in…

Q: aughter, Tabitha. Tabitha sub alue of $200,000. How much

A: Fair market value refers to the monetary value of an asset at which the asset will be sold in the…

Q: Zane, an individual, owns all of the outstanding common stock in XYZ Utilities Corporation. Zane…

A: Given that: Stock basis = $8000 Accumulated Earnings = $25,000

Q: Juliana purchased land three years ago for $106,300. She made a gift of the land to Tom, her…

A: In the case of capital gain or loss arising from gifted property or inheritance, the cost of the…

Q: Victor's gross farm income is $540, and his net farm profit is $460. Consequently, his net earnings…

A: - Gross farm income (GFI) = $540- Net farm profit (NFP) = $460- Net earnings under farm optional…

Q: axpayer runs a greenhouse as a sole proprietorship using the accrual method. At the end of the…

A: The question is based on the concept of Taxation.

Q: proceeds of the sale in acquiring a new principal residence, the capital gains tax due is?

A: Nicanor Sold Rest House for = P 8000000 Fair Market Value of rest house at the time of sale (…

Q: If a taxpayer excludes the gain on the sale of his personal residence and, within two years, sells a…

A: The objective of the question is to determine the correct rule for excluding gain on the sale of a…

Q: Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both…

A: Section 1231 is used for depreciable real property for more than one year. Under this section gain…

Q: M acquired a home in 20X1 for $300,000 and a cottage in 20X5 for $200,000. In 20X8 M sold the home…

A: If anybody sold land or building after possessing the land or building for more than 24 months then…

Q: Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the…

A: Capital gain refers to the amount that arises from the increase in the value of capital assets and…

Q: B Corporation, a calendar year-end, accrual basis taxpayer, is owned 75 percent by Bonnie, a cash…

A: Cash basis lets businesses record income and expenses only when cash is actually received or paid.…

Q: Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for…

A: Purchase price = $63,000 Adjusted value now= $37,800 Sale price = $41,580 Gain = Sale price -…

Q: Kesha, a sole proprietor, is engaged in a cash basis service business. In the current year, she…

A: Tax consequences are occurred as and when real benefits of the transactions are exchanged.…

Q: Lena is a sole proprietor. In April of this year, she sold equipment purchased four years ago for…

A: Gain on equipment sale = selling price - Adjusted basis For first equipment = 17000 - 15500 = 1500

Q: Robert acquired his rental property 10 years ago for $110,000 and sold it in the current year for…

A: Depreciable cost=Cost of property-Accumulated depreciation=$110,000-$35,000=$75,000

Q: Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the…

A: Lets understand the basics.Capital gain refers to the amount that arises from the increase in the…