Lisa sells business property with an adjusted basis of $168,800 to her son, Alfred, for its fair market value of $135,040. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $ realized of which $ b. What is Alfred's recognized gain or loss if he subsequently sells the property for $185,680? For $109,720? If Alfred sells the property for $185,680, he has a recognized is recognized. If Alfred sells the property for $109,720, he has a recognized of $ of $

Lisa sells business property with an adjusted basis of $168,800 to her son, Alfred, for its fair market value of $135,040. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $ realized of which $ b. What is Alfred's recognized gain or loss if he subsequently sells the property for $185,680? For $109,720? If Alfred sells the property for $185,680, he has a recognized is recognized. If Alfred sells the property for $109,720, he has a recognized of $ of $

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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Explain why the loss resulting from the sale of a computer in the following three situations is treated differently for income tax purposes:a. Monica sells her personal computer at a loss of $1,300. None of the loss is deductible.b. Omar sells a computer used in his carpeting business at a loss of $4,300. The loss is fully deductible.c. Jerry sells his computer at a loss of $3,800. Jerry used the computer to keep track of his investment portfolio. Only $3,000 of the loss is deductible.
Heather sells land (adjusted basis, $75,000; fair market value, $85,000) to a partnership in which she controls an 80% capital interest. The partnership pays her only $50,000 for the land. a. How much loss does Heather realize and recognize? b. If the partnership later sells the land to a third party for $80,000, how much gain does that partnership realize and recognize?
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