Inventory. Building Land Total FMV $ 28,000 210,000 322,000 $560,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market valu corporation's stock received in the exchange was $460,000. The transaction met the requirements to be tax-c under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if op Adjusted basis Adjusted Basis $ 14,000 140,000 420,000 $574,000 Assume the corporation assumed a mortgage of $660,000 attached to the building and land. Assume the fair marke building is now $350,000 and the fair market value of the land is $742,000. The fair market value of the stock remain g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermedia Inventory FIELM Building Land

Inventory. Building Land Total FMV $ 28,000 210,000 322,000 $560,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market valu corporation's stock received in the exchange was $460,000. The transaction met the requirements to be tax-c under $351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if op Adjusted basis Adjusted Basis $ 14,000 140,000 420,000 $574,000 Assume the corporation assumed a mortgage of $660,000 attached to the building and land. Assume the fair marke building is now $350,000 and the fair market value of the land is $742,000. The fair market value of the stock remain g. What is the corporation's adjusted basis in each of the assets received in the exchange? (Do not round intermedia Inventory FIELM Building Land

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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H3. Please show proper step by step calculation with details
Kansas Company acquired a building valued at $158,000 for property tax purposes in exchange for 12,000 shares of its $3 par common stock. The stock is widely traded and selling for $19 per share. At what amount should the building be recorded by Kansas Company? a. $228,000 b. $36,000 OC. $158,000 Od. $191,500
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Q.6.
Problem 08-48 (Algo) [LO 8-1, 8-7, 8-8] Ms. Drake sold a business that she had operated as a sole proprietorship for 18 years. On the date of sale, the business balance sheet showed the following assets: Accounts receivable Inventory Furniture and equipment: Cost Accumulated depreciation Leasehold improvements: Cost Accumulated amortization Tax Basis $ 37,750 143,200 Net cash flow 50,750 (40,600) 22,000 (4,400) Required: The purchaser paid a lump-sum price of $316,000 cash for the business. The sales contract stipulates that the FMV of the business Inventory is $156,400, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms. Drake's marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.
Rivendell Corporation uses the accrual method of accounting and has the following assets as of the end of 2020. Rivendell converted to an S corporation on January 1, 2021. (Leave no answer blank. Enter zero if applicable.)Asset Adjusted Basis FMVCash $ 40,000 $ 40,000Accounts receivable 30,000 30,000Inventory 130,000 60,000Land 100,000 125,000Totals $ 300,000 $ 255,000 b. Assuming the land was valued at $200,000, what would be Rivendell’s net unrealized gain at the time it converted to an S corporation? c. Assuming the land was valued at $125,000 but that the inventory was valued at $85,000, what would be Rivendell’s net unrealized gain at the time it converted to an S corporation?
Accrued Expenses: Entity D acquired a piece of land on April 1, 20x1. The purchase price was reduced by a credit for the real property taxes accrued during the year. Entity D records real property taxes at each month-end by adjusting the prepaid tax or tax payable account as appropriate On May 1, 20x1 Entity D paid the first of two equal installments of P72,000 for real property taxes. Requirement: What is the entry to record the payment on May 1?
Recording Entries for Impairment of Investments-HTM Atlanta Inc. holds an HTM bond investment in Falcons Corporation. The carrying value of the investment is $112,400 on December 31. Atlanta Inc. determines the present value of the amounts expected to be collected under the debt contract under the CECL model to be $96,000. a. Record the impairment loss on December 31. Date Account Name Dec. 31 Loss on Impairment Investment Income Account Name ◆ Loss on Impairment ✓ x <) b. Assume that Atlanta Inc. holds the HTM bond investment in Falcons Corporation on December 31 of the following year. Record the adjusting entry if the present value of the amounts expected to be collected under the debt contract under the CECL model is now estimated to be $104,000. Date Dec. 31 Investment Income Dr. 16,400 ✓ 0✓ 수 x → x Dr. 8,000 Cr. 0✔ 0 16,400 Cr. 0 8,000
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ebook Exercise 20-12 (Algorithmic) (LO. 1) The entity reports the following transactions for the 2021 tax year. The trustee accumulates all accounting income for the year. Operating income from a business Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds Trustee fees, deductible portion Net rental losses, passive activity $785,000 47,100 6,280,000 (23,550) (157,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute the Federal income tax liability for the Valerio Trust by providing the following amounts: The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $ The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $ The Federal income tax liability for the Valerio Trust is $ 47,100 761,350