Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount. and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 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. Complete this question by entering your answers in the tabs below. Required a Required b Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount and ch recognized gain or loss on the sale. Required c Recognized Gain or (Loss) Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) $ $ $ EA 14,300 (14,300) 0
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount. and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 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. Complete this question by entering your answers in the tabs below. Required a Required b Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount and ch recognized gain or loss on the sale. Required c Recognized Gain or (Loss) Character of Recognized Gain or (Loss): Ordinary Gain or (Loss) §1231 gain or (loss) $ $ $ EA 14,300 (14,300) 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the
warehouse several years ago for $103,500, and it has claimed $41,600 of depreciation
expense against the building.
Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero
if applicable. Round your final answers to the nearest whole dollar amount.
Required:
a. Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount
and character of Hauswirth's recognized gain or loss on the sale.
b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land
with a fair market value of $76,200, compute Hauswirth's realized gain or loss, recognized
gain or loss, deferred gain or loss, and basis in the new land.
c. Assuming that Hauswirth receives $21,000 in cash in year 0 and a $87,000 note receivable
that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in
year O and in year 1.
Complete this question by entering your answers in the tabs below.
Required a Required b Required c
Assuming that Hauswirth receives $76,200 in cash for the warehouse, compute the amount and cha
recognized gain or loss on the sale.
Recognized Gain or (Loss)
Character of Recognized Gain or (Loss):
Ordinary Gain or (Loss)
§1231 gain or (loss)
$
69
$
14,300
(14,300)
< Required a
0
Required b >
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