provide this questions answer for this account subject MH Realty, LLC sells a parcel of waterfront land and a residential condobuilding with an adjusted tax basis of $100,000 and 250,000,respectively for $500,000. The original purchase price MH allocated tothe building was $600,000. MH has deducted $350,000 in depreciationexpense. MH's realized gain is $150,000.If MH takes back a note as part of the proceeds, what is MH's grossprofit percentage?A. 83.33%.B. 71.43%.C. 70.00%.D. 50.00%.E. 30.00%.

Step 1: Definition of Gross Profit Percentage Gross profit percentage is the percentage of gross…

Answered: MH Realty, LLC sells a parcel of…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 44P

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KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the$85,000 mortgage on the property.Required: What is KNB’s amount realized on the sale?b. Compute KNB’s after-tax cash flow from the sale if its adjusted basis in the realproperty is $40,000 and its marginal tax rate is 35 percent.
Cooper Construction Company sells a used crane to Alpha Construction for $94,000. The crane, which originally cost $880,000, is fully depreciated. Under Sec. 1245 depreciation recapture rules, the entire gain is taxable as ordinary income. Cooper receives a down payment of $49,000 and is to receive $15,000 per year for three additional years plus interest of 10%, which is greater than the applicable federal rate. Read the requirements. Requirement a. Compute the gain from the sale. The gain from the sale is Requirement b. How much gain is taxable in the year of the sale? The taxable amount of the gain in the year of the sale is Requirement c. What income does Cooper report in each of the next three years? The income that Cooper Construction Company needs to report in each of the next three years is
Rayburn Corporation has a building that it bought during year 0 for $850,000. It sold the building in year 5. During the time it held the building Rayburn depreciated it by $100,000. What is the amount and character of the gain or loss Rayburn will recognize on the sale in each of the following alternative situations? a. Rayburn receives $840,000. b. Rayburn receives $900,000. c. Rayburn receives $700,000.
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $102,000, and it has claimed $ 33,800 of depreciation expense against the building. Required Assuming that Hauswirth receives $80, 500 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. Assuming that Hauswirth exchanges the warehouse in a like kind exchange for some land with a fair market value of $80, 500, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. Assuming that Hauswirth receives $27,500 in cash in year 0 and a S 88,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1.
General Accounting
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in the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had accumulated depreciation of $160,000, for a new building having a fair market value of $650,000 In connection with the exchange, Keyaki paid $280,000 in cash. What is the tax basis of the new building?
Eleven years ago, Lynn, Incorporated purchased a warehouse for $315,000. This year,the corporation sold the warehouse to Firm D for $80,000 cash and D’s assumption ofa $225,000 mortgage. Through date of sale, Lynn deducted $92,300 straight-linedepreciation on the warehouse.Required:a. Compute Lynn’s gain recognized on the sale of the warehouse.b. What is the character of this gain?c. How would your answers change if Lynn was a noncorporate business?
Abc
Renata Corporation purchased equipment in 2020 for $275,200 and has taken $123,840 of regular MACRS depreciation. Renata Corporation sells the equipment in 2022 for $165,120. What is the amount and character of Renata's gain or loss? Renata Corporation has a gain of $ § 1245 recapture X of which $ X is treated as ordinary income due to
Aqua Corporation purchases nonresidential real property on May 8, 2017, for $1,000,000. Straight-line cost recovery is taken in the amount of $89,765 before the property is sold on November 27, 2020, for $1,500,000. Compute the amount of Aqua’s recognized gain on the sale of the realty. Determine the amount of the recognized gain that is treated as § 1231 gain and the amount that is treated as § 1250 recapture (ordinary income).
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $72.500. and it has claimed $24,800 of depreciation expense against the building. Required: a. Assuming that Houswirth receives $59,700 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $59,700 compute Houswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Houswirth receives $26.500 in cash in year 0 and a $57,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Complete this question by entering your answers in the tabs below. Required a Required b Required c Assuming that Hauswirth receives $59,700 in cash for the warehouse, compute the amount…

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