Dorothea's recomputed gain
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Dorothea originally sold her home for 92000. At that time her adjusted basis in the home was 95000. Five years later she repossessed the home when the balance of the note was 87000. She resold it within on year for 100000. Original sale expenseses were 1150 and resale expenses were 1350. Repossession costs were 2900. She incurred 1100. for improvements prior to the resale. What is Dorothea's recomputed gain
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- Bonnie Jo purchased a used camera (five-year property) for use in her sole proprietorship. The basis of the camera was $3000. Bonnie Jo used the camera in her business 60 percent of the time and used it for personal purposes the rest of the time during the first year. Calculate Bonnie Jo's depreciation deduction during the first year, assuming the sole proprietorship had a loss during the year. (Bonnie did not place the property in service in the last quarter.) Multiple Choice: A. $300 B. $360 C. $600 D. $3000 E. None of these choices are correct.Terry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $4,500. Terry owes $5,000 to the Seller. What is Terry’s adjusted basis in the machine? $10,500 $8,000 $13,000 $5,500Abby's home had a basis of $360,000 ($160,000 attributable to the land) and a fair market value of $340,000 ($155,000 attributable to the land) when she converted 70% of it to business use by opening a bed-and-breakfast. Four years after the conversion, Abby sells the home for $500,000 ($165,000 attributable to the land). a. Calculate Abby's basis for gain, loss, and cost recovery for the portion of her personal residence that was converted to business use. b. Calculate the cost recovery deducted by Abby during the four-year period of business use, assuming that bed-and-breakfast is opened on January 1 of Year 1 and the house is sold on December 31 of year 4. Assume that the cost recovery percentages are 2.461% in Year 1 and 2.564% in Years 2–5. Round your computations and the final answer to the nearest dollar. The total cost recovery for the four-year period is $_________ c. What is Abby's recognized gain or loss on the sale of the business use portion? Abby's recognized…
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