Kong originally sold his home for $96,000. At that time, his adjustedbasis in the home was $99,000. Five years later, he repossessed thehome when the balance of the note was $91,000. He resold it withinone year for $105,000. Original sale expenses were $1,250, and resaleexpenses were $1,550. Repossession costs were $3,000. He incurred$1,000 for improvements prior to the resale.What is Kong's recomputed gain?a. $4,200b. $6,800c. $11,000d. $14,000

Loss on the original sale = $99,000 -$96,000 = $3,000 ParticularsAmount in dollarsResold…

Answered: Kong originally sold his home for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Chuck sold a tractor to a dealer for $16,000. He bought the tractor for $25,500 several years ago and has claimed $12,000 of depreciation deduction on the tractor. What is the amount and character of his gain or loss from the sale of the tractor?
Terry purchased a machine for $15,000; the seller is holding the note. Terry paid $2,500 for the required wiring and installation. Terry has deducted depreciation on the machine for 3 years totaling $4,500. Terry owes $5,000 to the Seller. What is Terry’s adjusted basis in the machine? Group of answer choices
Larry Gaines, a single taxpayer, age 42, sells his personal residence on November 12, 2023, for $191,600. He lived in the house for 7 years. The expenses of the sale are $13,412, and he has made capital improvements of $5,748. Larry's cost basis in his residence is $111,128. On November 30, 2023, Larry purchases and occupies a new residence at a cost of $239,500. Calculate Larry's realized gain, recognized gain, and the adjusted basis of his new residence.
tekabhai
Nkosi is 64 years old. During the current year of assessment, he sold a pre- valuation date value asset for R7 600 000. Included in the amount is the agent's commission who he had paid for getting a buyer for him. The commission is 5% of the selling price. The valuation date value of the asset was correctly calculated to be R3 440 000. Just before the asset was sold Nkosi incurred improvement costs worth R1 000 000 to increase his chance of being able to sell the asset. YOU ARE REQUIRED to determine the base cost of the asset. Select one: a. R3 440 000 b. R4 820 000 c. R4 440 000 d. R 3 820 000
Sean sells land to Eli, his brother, for the fair market value of $39,000. Six months later when the land is worth $45,000, Eli sells the property to his son, Jon, without gift tax. His son sells the land for $47,000. Sean’s adjusted basis for the land is $24,000 what is Jon’s recognized gain or loss on the sales?
Aleesia purchased a rental property in April 2017. Her basis for depreciation was $210,000. She has no adjustments to her basis. After preparing her own taxes for five years, she went to a paid preparer for her 2021 return. The preparer realized Aleesia had not claimed depreciation any of the previous years. She was allowed to claim $5,409 for 2016, and $7,636 each year for 2017, 2018, 2019, 2020, and 2021. 210,000 How much catch-up depreciation can Aleesia claim on her 2021 Form 3115? $22,908 $28,317 $35,953 $43,589 5,409 7,636
On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? (Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) a. Land sold for $32,000 Amount
Brian acquired a rental house in 2004 for a cost of $80,000. Straight-line depreciation on the property of $26,000 has been claimed by Brian. In January 2020, he sells the property for $120,000, receiving $20,000 cash on March 1 and the buyer's note for $100,000 at 10 percent interest. The note is payable at $10,000 per year for 10 years, with the first payment to be received 1 year after the date of sale. Calculate his taxable gain under the installment method for the year of sale of the rental house. In your computations, round any division to two decimal places. Gain reportable in 2020 is $fill in the blank 1.
Jos is a Sales Manager. He uses his own car to travel to various locations. He acquired the car on 1 October 2021 for $60,000. The acquisition cost was funded entirely by a loan at an interest rate of 15%. He has determined that the depreciation deduction on the car would be $2,300 for the year. In addition, Jos incurred the following expenses during the year: Registration and insurance = $2,000; Repairs and maintenance = $1,000; and Oil and fuel costs = $1,500. For the period 1 October 2021 to 30 June 2022, Jos estimates that the car travelled 15,000 kilometres, 12,000 of which were for business purposes. You may assume that Jos has maintained all necessary records and a logbook. Required: Calculate Jos's deduction for car expenses under the two methods (cent per kilometre rate 0.72 and logbook) in Div 28 of Income Tax Assessment Act 1997. Assume that depreciation has been adjusted for part-year use and the impact of the car limit
Clara received from her Aunt Sona property with a FMV at the date of the gift of $30,000. Aunt Sona purchased the property five years ago for $35,000 If Clara sold the property for $28,000, what is her gain or loss on the sale?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS