Liz sold her principal residence for PHP 5,000,000 when its fair market value was PHP 6,000,000.  The house was purchase 5 years ago for PHP 3,000,000. Out of the proceeds of PHP 5,000,000, Liz utilized the PHP 4,000,000 for the purchase of new residential house.   What is the cost basis of the new residence PHP 2,000,000 PHP 5,000,000 PHP 2,400,000 PHP 4,000,000

Q: .25. Sale Of Principal Residence Ms. Jan Sadat owns a house in Ottawa as well as a cottage in…

A: There are capital gains whether it is short term or long term it depends on the whether you sell in…

Q: Max purchased a rental property ten years ago for a total of $300,000 with $70,000 attributed to the…

A: There are two questions asked by you but as per our protocol we are authorized to answer to solve…

Q: 9. Daisy's warehouse is destroyed by a tornado. The warehouse has an adjusted basis of $200,000 when…

A: Deferred realized gain :      The tax assessees have the option to choose between defer the realized…

Q: Your client has a $220,000 Homeowners Comprehensive policy with $200 deductible. He/she is planning…

A: We subtract the deductible from the overall cost of damage to ascertain how much the owner should…

Q: How much Capital losses she can utilise to against other Capital Gain

A: Any profit or loss arising from transfer of a capital asset shall be chargeable under the head…

Q: What is Ariel's basis for the ring?

A: Gifted property refers to assets transferred from one individual to another without the expectation…

Q: Ronnie's custom cars purchased fixed assets 2 years ago for $42,000. Ronnie has been offered $30,000…

A: The value at which a company disposed of its used assets is term as the salvage value.

Q: Basket Purchase. (Obj. 1) Leo purchased an apartment building. Leo paid $300,000 in cas assumed a…

A: Depreciation -Depreciation is the gradual reduction in value that occurs of physical assets over…

Q: On 1 novemebr 1992 doug had anice home in sydeny and so he acquired a second hand lounge room set of…

A: SOLUTION- FORMULA- INDEXED COST OF ACQUISITION=ACTUAL PURCHASE PRICE * INDEX IN THE YEAR OF SALE /…

Q: a) Calculate the amount of cost recovery that can be taken in 20x5. b) What would your answer be if…

A: According to the Cost Basis of a Home Converted from Residence to Rental, the basis for depreciation…

Q: Personal Use Asset: Ivanka bought a 75 inches LED TV for $11,000 3 years ago, She sold it on the…

A: Capital gain: Gain arising out from the sale of any capital asset is known as capital gain. It…

Q: Provide answer

A: To determine the basis of the house for depreciation when Tara converts her personal residence into…

Q: Vanessa recently paid $200,000 cash to purchase both a building and equipment. The fair market value…

A: Answer Fair Value of Building = $180,000 Fair Value of Equipment = $40,000 Total of fair values =…

Q: Problem 8-30 (Algorithmic) (LO. 1, 2) In 2019, José purchased a house for $203,200. He used the…

A: The residential property is the house that is used by the taxpayer for other own living and the…

Q: This year, Manuel purchased, and placed into service, a single-family rental house. He paid the…

A: Depreciation is a non-cash expense.Depreciation is charged on fixed asset over a estimated useful…

Q: Kyle owns some land in Connecticut for which he paid $20,000 several years ago the property is now…

A: Fixed asset: It implies to a non-current asset, having an expected useful life of more than a year…

Q: Miss Zena Quinn purchased a property in 2011 for $3,000,000. She is now including her two children…

A: When you sell a financial item (such as stocks, real estate, or other assets) for more money than…

Q: 8. You and your partner purchased an apartment complex that cost $1,000,000 in June of 2010. The…

A: The answer for the multiple choice question and relevant working are presented hereunder : Cost of…

Q: Sally owns a real estate flipping business. Assume she purchases a residential rental property for…

A: Closing costs are the incidental expenses to a real estate transaction and they may include…

Q: This year, Barney and Betty sold their home (sales price $750,000; cost $200,000). All closing costs…

A: Capital gain on sales of home=Sale proceeds from the sale of the house-Cost of the home sold

Q: Javier purchased a building, including the land it was on, to assemble his new equipment. The total…

A: SOLUTION DEPRECIATION  MEANS THE MONETARY VALUE OF AN ASSET DECREASE OVER TIME DUE TO USE , WEAR AND…

Q: Rock Properties recently purchased a building that generates Gross Rental Income of $190,000 per…

A: The capitalization rate is a financial measure that helps to evaluate capital assets based on their…

Q: 5. Yoda purchased a parcel of land three years ago for $35,000. In the current year, Count Dooku…

A: The answer is option (A.) [i.e, $45,000] Refer step 2 for explanation

Q: Henry Oldham purchased the office building in which his CPA firm was housed in 1983 . Henny…

A: Detailed Calculation of Henry's Gain on the Sale1. Adjusted Basis:• Purchase price: $225,000• This…

Q: ents plus the interest on the remaining loan. What was the amount of the loan? What was the amount…

A: in this problem payment is made by four equal payment plus interest on remaining amount.

Q: Frankie purchased a freehold townhouse which she used to generate rental income. She originally…

A: If a class of assets has been completely sold, but there's still an undepreciated capital cost (UCC)…

Q: Deductible amount

A: Capital expenditure are not deductible. Since land is a Capital expenditure , So purchase of land is…

Q: Rachel Weitzman's basis in investment-use land was $15,000. She received a gross condemnation award…

A: Introduction:- Calculation of unrealized gain as follows:- Unrealized gain = Net condemnation award…

Q: Shenandoah Skies bought land to be used for a new ski resort. Which of the following costs should…

A: Long term costs are capitalized. With regards to purchase of assets like a fixed asset or a land…

Q: Timmy paid $800,000 cash for all of the assets of Bob’s Chicken Fried Steak Shack, Inc. (Bob’s).…

A: The depreciable basis is equal to the asset's purchase price, minus any discounts, and plus any…

Q: Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market…

A: Compute the recognized gain or loss: Amount realized ($148,000 + $12,000) $160,000 Adjusted…

Q: LO.2 During the year, Eugene had the four property transactions summarized below. Eugene is a…

A: To determine the nature of the property held. We have to consider the period the property is being…

Q: 2

A: The company's inventory should be reported on the balance sheet at the lower of cost or market…