Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: Tax Basis FMV Assets $ 96,300 192,600 $ 288,900 $ 96,300 452,700 Cash Land Totals $ 549,000 Liabilities and capital Capital-Amy Capital-Brittany Сapital-Ben $ 96,300 $ 96,300 $ 96,300 $ 288,900 Totals (Leave no answer blank. Enter zero if applicable.) d. How much gain or loss would Michelle recognize if the land were sold for $452,700? Recognized gain

Michelle pays $183,000 cash for Brittany's one-third interest in the Westlake Partnership. Just prior to the sale, Brittany's basis in Westlake is $96,300. Westlake reports the following balance sheet: Tax Basis FMV Assets $ 96,300 192,600 $ 288,900 $ 96,300 452,700 Cash Land Totals $ 549,000 Liabilities and capital Capital-Amy Capital-Brittany Сapital-Ben $ 96,300 $ 96,300 $ 96,300 $ 288,900 Totals (Leave no answer blank. Enter zero if applicable.) d. How much gain or loss would Michelle recognize if the land were sold for $452,700? Recognized gain

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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