hat is the Amount Realized, Type and amount of Basis, and Gain or Loss of: Lois buys a herd of llamas from Brian for 20,000 cash and 180,000 non-recourse note carried by the seller. She intends to breed them as racers. When the llama market fails, she surrenders the herd back to the seller pursuant to a provision in the note. She took a deduction of 35,000 because some of her llamas died of heatstroke. At that time, the herd is only worth 50,000, and she has 175,000 remaining on the note.
hat is the Amount Realized, Type and amount of Basis, and Gain or Loss of: Lois buys a herd of llamas from Brian for 20,000 cash and 180,000 non-recourse note carried by the seller. She intends to breed them as racers. When the llama market fails, she surrenders the herd back to the seller pursuant to a provision in the note. She took a deduction of 35,000 because some of her llamas died of heatstroke. At that time, the herd is only worth 50,000, and she has 175,000 remaining on the note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the Amount Realized, Type and amount of Basis, and Gain or Loss of:
Lois buys a herd of llamas from Brian for 20,000 cash and 180,000 non-recourse note carried by the seller. She intends to breed them as racers. When the llama market fails, she surrenders the herd back to the seller pursuant to a provision in the note. She took a deduction of 35,000 because some of her llamas died of heatstroke. At that time, the herd is only worth 50,000, and she has 175,000 remaining on the note.
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