Please provide correct answer accounting question James corporation exchanges a building (fair market value is $800,000, theadjusted basis is $600,000) that have a $100,000 mortgage for another buildingowned by Pete Corporation (fair market value is $1,100,000, the adjusted basis is$600,000) that is encumbered by a $400,000 mortgage. Each party assumed themortgage on the building received.What are James's and Pete's recognized gains on the exchange, respectively?a. 0, 0b. 0, $300,000c. $100,000, 0d. $100,000, $400,000

In this scenario, we have an exchange of real estate between James Corporation and Pete Corporation.…

Answered: James corporation exchanges a building…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 3DQ

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Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Answer is complete but not entirely correct. Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Transferred Warehouse Land Mortgage on warehouse Cash Assets Received Land FMV $ 432,500 Original Basis Accumulated Depreciation $ 278,000 $ 55,500 55,000 55,000 63,750 21,000 21,000 FMV $ 444,750 What are Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Answer is complete but not entirely correct. Description Realized gain Amount $ 167,250 Recognized gain $ 84,750 x Adjusted basis in new property $ 278,000
QUESTION: TURQUOISE REALTY COMPANY OWNS AN APARTMENT HOUSE THAT HAS AN ADJUSTED BASIS OF $760,000 BUT IS SUBJECT TO A MORTGAGE OF $192,000. TURQUOISE TRANSFERS THE APARTMENT HOUSE TO DOVE, INC., AND RECEIVES FROM DOVE $120,000 IN CASH AND AN OFFICE BUILDING WITH A FAIR MARKET VALUE OF $780,000 AT THE TIME OF THE EXCHANGE. DOVE ASSUMES THE $192,000 MORTGAGE ON THE APARTMENT HOUSE. THE BASIS OF THE NEWLY ACQUIRED OFFICE BUILDING IS:
Answer with proper explanation
Question: Turquoise Realty Company owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. Turquoise transfers the apartment house to Dove, Inc., and receives from Dove $120,000 in cash and an office building with a fair market value of $780,000 at the time of the exchange. Dove assumes the $192,000 mortgage on the apartment house. Turquoise's realized gain is:
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Alpesh
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A corporation sells property (basis of $750,000) to its sole shareholder for $450,000, the fair market value of the property. With respect to the sale: MPC Corporation makes a property distribution on 12/31/16 to its sole shareholder, Jon. The property distributed is a house (fair market value of $400,000; basis of $300,000) that is subject to a $150,000 mortgage that Jon assumes. Before considering the consequences of the distribution, MPC’s current E & P before the distribution is $175,000 and its accumulated E & P is $100,000. MPC makes no other distributions during the current year. What is MPCs taxable gain on the distribution of the house? What is MPC’s current E&P after the distribution on 12/31/16? What is Jon’s taxable gain (if any) and what type of gain is it? What is Jon’s basis in the house?
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am. 117.

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