gains are recognized in periods subsequent to the year of sale, those gains will be apportioned using what rate
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Jesse sold her property for $50,000 under an installment agreement. She had no debts on the
property at the time of sale. The adjusted basis of the property was $35,000 and the selling
expenses totaled $5,000. When gains are recognized in periods subsequent to the year of
sale, those gains will be apportioned using what rate?
a) 25%
b) 30%
c) 20%
d) 40%
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- On October 3, Kim Bailey paid $250,000 for a residential rental property. Thispurchase price represents $200,000 for the building and $50,000 for the land.Five years later, on June 25, she sold the property for $250,000. Compute theMACRS depreciation for each of the five calendar years during which she hadthe property.Jessie purchased land as an investment on January 12, 2016 for $80,000. On January 31, 2021, Jessie sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $70,000 on the land. What is the amount of the realized gain or loss on the sale? a.$10,000 loss b.$15,000 gain c.$23,000 gain d.$47,000 loss e.None of these choices are correct.The executor of Rose Shield's estate listed the following properties (at fair value): $ 350,000 250,000 150,000 Cash Life insurance receivable Investments in stocks and bonds Rental property 100,000 180,000 Personal property Following are the transactions that occur in the months following the decedent's death: 1. Claims of $90,000 are made against the estate for various debts incurred before the decedent's death. 2. Interest of $22,000 is received from bonds held by the estate. Of this amount, $4,000 had been earned prior to death. 3. Ordinary repairs costing $11,000 are made to the rental property. 4. All debts ($90,000) are paid. 5. Stocks recorded in the estate at $21,000 are sold for $29,000 cash. 6. Rental income of $24,000 is collected. Of this amount, $7,000 had been earned prior to the decedent's death. 7. Cash of $7,000 is distributed to Jim Arness, an income beneficiary. 8. The proceeds from the life insurance policy are collected and the money is immediately distributed to…
- O Sebastian originally sold his home in an installment sale for $300,000. At the time, his adjusted basis in the home was $220,000. He qualified for the Section 121 principal residence exclusion, so his gain was not included in his taxable income for the year of sale. Three years later, he repossessed the home from the buyer when the balance of the note was $275,000. He spent $8,000 on improvements and resold it within the year for $320,000. What is Sebastian's recomputed adjusted basis in the property? $228,000 $258,000 $278,000 $308,000Rose dies with passive activity property having an adjusted basis of $98,800, suspended losses of $31,616, and a fair market value at the date of her death of $138,320. Of the $31,616 suspended loss existing at the time of Rose's death, how much is deductible on her final return or by the beneficiary? The basis for the property i ; therefore, of the $31,616 suspended loss is to deductible on Rose's final return or by the beneficiary.Nancy purchased new business computers (7-year property) in January for a total of $1,200,000. She plans to take advantage of §179 expensing and MACRS depreciation (but not first year additional depreciation). What is the total amount of her depreciation deduction?
- Stan owned machinery which had been acquired at a cost of $250,000. During 2020, the machinery was destroyed by fire. At that time, it had an adjusted basis of $200,000. The insurance proceeds awarded to Stan amounted to $270,000 and he immediately acquired qualifying replacement property for $240,000. What amount of gain should Stan report resulting from the involuntary conversion for 2020? a. $ 0 b. $70,000 c. $40,000 d. $30,000 e. None of the answers provided is correct ***The answer is D need to know how it was calculated only ? **In the current year, Eva has net short-term capital losses of $3,000, a net long-term capital loss of $42,000, and taxable income from wages of $36,000. a. Calculate the amount of Estes' deduction for capital losses for the current year. b. Calculate the amount and nature (short-term or long-term) of his capital loss carryforward. c. For how many years may Eva carry the unused loss forward?Alma sells the following depreciable assets from her sole proprietorship: Asset Cost Office furniture $10,000 Age Gain/Loss 4 years ($2,400) Truck $2,000 5 years 3,100 Bakery equipment $25,000 9 months (4,500) What should Alma report on her income tax return relative to these property transactions? a. $3,800 capital loss b. $3,100 Section 1245 recapture; $2,400 Section 1231 loss; $4,500 ordinary loss c. $3,800 ordinary loss d. $700 Section 1231 gain; $4,500 ordinary loss e. None of the above
