Franco converted a building from personal to business use in May 2018 when the fair market value was $45,000. He purchased thebuilding in July 2015 for $72,000. On December 15 of this year, Franco sells the building for $36,000. On the date of sale, theaccumulated depreciation on the building is $4,565. What is Franco's recognized gain or loss on the sale?

Franco converted a building from personal to business use in May 2018 when the fair market value was $45,000. He purchased the building in July 2015 for $72,000. On December 15 of this year, Franco sels the bulding for $36,000. On the date of sale, the accumulated depreciation on the building is $4,565. What is Franco's recognized gain or loss on the sale?

Franco converted a building from personal to business use in May 2018 when the fair market value was $45,000. He purchased the building in July 2015 for $72,000. On December 15 of this year, Franco sels the bulding for $36,000. On the date of sale, the accumulated depreciation on the building is $4,565. What is Franco's recognized gain or loss on the sale?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On May 28, 2020, Mary purchased and placed in service a new $60,000 car. The car was used 60% for business, 20% for production of income, and 20% for personal use in 2020. In 2021, the usage changed to 40% for business, 30% for production of income, and 30% for personal use. Mary did not elect immediate expensing under § 179. She did not claim any available additional first-year depreciation. Compute Mary's cost recovery deduction for 2020 and 2021 and any cost recovery recapture in 2021.
FRANK PURCHASED EQUIPMENT FOR $50,000 ON MARCH 1, 2014. AS OF TODAY, FRANK HAS TAKEN $20,000 OF DEPRECIATION DEDUCTIONS ON THE EQUIPMENT. DUE TO CURRENT MARKET CONDITIONS, FRANK DECIDES TO SELL THE EQUIPMENT BECAUSE HE CAN SELL IT NOW FOR $60,000. HOW MUCH AND WHAT TYPE OF GAIN DOES FRANK RECOGNIZE WHEN HE SELLS THE EQUIPMENT NOW? A. $30,000 ORDINARY INCOME. B. $30,000 LONG-TERM CAPITAL GAIN. C. $20,000 LONG-TERM CAPITAL GAIN AND $10,000 ORDINARY INCOME. D. $10,000 LONG-TERM CAPITAL GAIN AND $20,000 ORDINARY INCOME.
! Required information [The following information applies to the questions displayed below.] Sarah (single) purchased a home on January 1, 2008, for $600,000. She eventually sold the home for $800,000. What amount of the $200,000 gain on the sale does Sarah recognize in each of the following alternative situations? (Assume accumulated depreciation on the home is $0 at the time of the sale.) Note: Leave no answer blank. Enter zero if applicable. d. Sarah used the home as a vacation home from January 1, 2008, through December 31, 2017. She used the home as her principal residence from January 1, 2018, until she sold it on January 1, 2024. Note: Round intermediate percentage computation to 2 decimal places. Gain recognized $ 0
Alpha sold machinery, which it used in its business, to Beta, a related entity, for $40,250. Beta used the machinery in its business. Alpha bought the machinery a few years ago for $49,750 and has claimed $30,250 of depreciation expense. What is the amount and character of Alpha's gain?
Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed barbarous 20,000 mortgage on the property. What is the amount of Barbara's gain, and where on form 4797 will she report the sale?
Vijay
Surendra's personal residence originally cost $340,000 (ignoring the value of the land). After living in the house for five years, he converts it to rental property. At the date of conversion, the fair market value of the house is $320,000. a. Surendra's basis for loss for the rental property is s 32,000 b. Surendra's basis for depreciation for the rental property is $ c. Surendra's basis for gain for the rental property is $ d. Could Surendra have obtained better tax results if he had sold his personal residence for $320,000 and then purchased another house for $320,000 to hold as rental property? No, because his basis in his personal residence would become his basis in the rental property. e. Complete the letter below regarding an e-mail to your instructor. TO: Instructor 320,000 340,000 FROM: Student DATE: January 6, 2022 The purpose of this e-mail is to address the tax issues associated with Surendra's conversion of his principal residence into a rental property. I am basing my…
On May 1st, 2015, Nancy Silva paid $870,000 for a commercial building. She later sold the building on August 27th, 2021, for $1,850,000. Find the depreciation amount in 2015 using the appropriate MACRS GDS method.
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000, and it has claimed $ 33,800 of depreciation expense against the building. Required Assuming that Hauswirth receives $80, 500 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. Assuming that Hauswirth exchanges the warehouse in a like kind exchange for some land with a fair market value of $80, 500, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. Assuming that Hauswirth receives $27,500 in cash in year 0 and a S 88,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1.
Godo Farhana purchased a new stove for $600 and placed it in service in her rental house in June 2018. No special depreciation allowance was claimed. Farhana sold the rental house, including the stove, in October 2021. Her adjusted basis including depreciation on the stove at the time of sale was $139. The stove was included in the sale, but the statement specified a price of $375, leaving a $236 gain. Under what section of the Internal Revenue Code will that gain fall?
Chuck sold a tractor to a dealer for $16,000. He bought the tractor for $25,500 several years ago and has claimed $12,000 of depreciation deduction on the tractor. What is the amount and character of his gain or loss from the sale of the tractor?
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? Group of answer choices