How do you determine the basis of acquired property in a like-kind exchange?  Give an example

Q: What qualifies as a like-kind exchange?

A: Definition: Property, plant, and equipment: These assets are long lived economic resources which are…

Q: Describe the exchanges in nonmonetary asset.

A: A non-monetary transaction refers to a commercial or business transaction that happens without the…

Q: What is the different between real and personal property? Include examples

A: Immovable property is land. It defines property and everything related to it, including buildings,…

Q: What is a land contract?

A: Land contract: A land contract is a course of action between a consumer and a dealer that applies to…

Q: Are perishable and homogeneous properties alike? How the possibilities of usury should be observed…

A: Introduction:- Making unethical or immoral monetary loans that unfairly advantage the lender is…

Q: Define the term an identical asset?

A: An identical asset is the group of similar assets which are individually not distinguishable and can…

Q: How can a leased fee estate have a value that could be transferred to another party?

A: The question is based on the concept of valuation of real estate used under lease arrangement.

Q: Which two models may an entity opt for when accounting for investment property?

A: Investment property is a type of properly held by personnel for the intention of earning returns…

Q: Explain the term Right of Entry: Lender in Possession?

A: The question is based on the concept of giving right of entry in case of mortgage arrangement in…

Q: Explain how to defer gains using the like-kind exchange rules.

A: A like kind exchange is defined as the tax deferred transaction, which used to allow regarding the…

Q: What is the cost of right of use asset? 2. What is the gain on right transferred to the…

A: Cost of right of use asset 1468000 Gain on right transferred to buyer-lessor 533000

Q: Explain Transfer of Property or a Beneficial Interest in Borrower?

A: The question is based on the agreement of Mortgage loan in real estate deal.

Q: Explain the method of direct capitalization method?

A: The three approaches to value a business or an investment are the Income based,  Market based and…

Q: How should goodwill be amortized?

A: Goodwill is an example of intangible assets which has no physical identity.

Q: What are the important properties of real estate as an asset class? How are they similar/different…

A: The real estate investment class is a type of investment class which is focusing upon investing in…

Q: On January 1, 20x1, ABC Co. acquired 75% interest in XYZ, Inc. for P2,500,000 cash. ABC Co. incurred…

A: Goodwill refers to the intangible asset which arises when buyer acquires the existing business.

Q: Access the glossary (“Master Glossary”) to answer the ­following. a.    What does it mean to…

A: Answer: To capitalize an item means to use the item for the long term in the business and disclose…

Q: Briefly discuss the rules related to distributions of noncash property.

A: The seven rules related to distributions of non cash property are as follows: 1. The distribution…

Q: Explain Property Type Swap?

A: Answer: Swap alludes to exchange with another between the parties involved in one monetary…

Q: Why does the so-called distressed property situation exist?

A: Distressed property refers to those which have value less than the market value. This situation…

Q: What is the goodwill arising from the acquisition?

A: A business combination occurs when an entity acquires control over an organization. Asset purchases…

Q: can goodwill be amoritized?

A: Goodwill: Goodwill is an intangible asset to the company. However, goodwill is recorded in the books…

Q: HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant…

A: After Consolidation: The increase in identifiable assets is 3,600,000-2,200,000= 1,400,000. The…

Q: gain is to be recognized

A: Carrying amount of the non-monetary asset = Cost - Accumulated depreciation Given that,   Cost…

Q: What are §1031 like-kind exchanges? And, what are qualifying assets? Please provide some examples.

A: IRC Sec 1031 gives us an exception and also provides the tax payers to defer payment of tax on gains…

Q: Explain Amortize Goodwill? Give an example?

A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…