Nikeya sells land (adjusted basis of $120,000) to her adult son, Shamed, for its appraised value of $95.000. Which of the following statements is correct? Nikeya's recognized loss is $25,000 ($95.000 amount realized - $120,000 adjusted basis). Shamed's adjusted basis for the land is $120,000 ($95.000 cost +$25,000 disallowed loss for Nikeya). If Shamed subsequently sells the land for $112,000, he has no recognized gain or loss. Julua 202

Nikeya sells land (adjusted basis of $120,000) to her adult son, Shamed, for its appraised value of $95.000. Which of the following statements is correct? Nikeya's recognized loss is $25,000 ($95.000 amount realized - $120,000 adjusted basis). Shamed's adjusted basis for the land is $120,000 ($95.000 cost +$25,000 disallowed loss for Nikeya). If Shamed subsequently sells the land for $112,000, he has no recognized gain or loss. Julua 202

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

Charla owns land used in her business with a basis of $70,000 and a fair market value of $100,000. She is planning to exchange the land for a warehouse owned by Jim and used in his business. Jim's warehouse has a basis of $50,000 and a fair market value of $150,000. The warehouse is also subject to a liability of $50,000. Charla has agreed to assume the liability for Jim. Requirement What is Jim's recognized gain and his basis in the new land? **** Begin by calculating the realized gain. First identify the formula, then enter the applicable amounts and calculate the realized gain. Realized gain
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?
On October 1, 2019, jasper and Alice, who file a joint return and live in Chicago, sell their personal residence, which they have owned and Iived in lor & years. The realized gain of $325,000 is excluded under 5121 (Sale of a Principal Residence). They purchase another personal residence for $525,000 on October 2, 2019. Alice's employer transfers her to the Denver office in August 2020. Jasper and Alice sell their Chicago residence on August 2, 2020 and they purchase a residence in Denver shortly thereafter. The realized gain on the sale is $300,000. Which of the following statements is true regarding the August 2020 sale? O Jasper and Alice cannot exclude any of the gain from the August 2020 sale because they did not own and lve in the home for at least 2 years. O Jasper and Alice can exclude $104,167 on the August 2020 sale O Jasper and Alice can exclude $208,333 on the August 2020 sale. O Jasper and Alice can exclude $250,000 on the August 2020 sale. O Jasper and Alice can exclude…
Required information [The following information applies to the questions displayed below.] This year, Leron and Sheena sold their home for $750,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Note: Leave no answer blank. Enter zero if applicable. a. Leron and Sheena bought the home one year ago for $600,000 and lived in the home until it sold. Answer is complete but not entirely correct. Taxable gain $ (350,000)
Camilo's property, with an adjusted basis of $304,000, is condemned by the state. Camilo receives property with a fair market value of $349,600 as compensation for the property taken. If an amount is zero, enter "0". a. What is Camilo’s realized and recognized gain?Camilo's realized gain is $___________ and his recognized gain is $____________. b. What is the basis of the replacement property?The basis of the replacement property is $________________.
Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for the residence is $537,800. He receives condemnation proceeds of $510,910 and invests the proceeds in stocks and bonds. a. Calculate Yancy's realized and recognized gain or loss. Yancy's realized _______ is $_________ , and Yancy's recognized ______ is $_________. b. If the condemnation proceeds are $562,001, what are Yancy's realized and recognized gain or loss? Yancy's realized _______ is $_________ , and Yancy's recognized ______ is $_________. c. Assume the house is rental property. Yancy's adjusted basis is $537,800 and he receives condemnation proceeds of $510,910 and invests the proceeds in stock. What are Yancy's realized and recognized gain or loss? Yancy's realized _______ is $_________ , and Yancy's recognized ______ is $_________.
Lisa sells business property with an adjusted basis of $132,000 to her son, Alfred, for its fair market value of $105,600. If an amount is zero, enter "0". a. What is Lisa's realized and recognized gain or loss? Lisa has a $__________ realized loss of which $___________is recognized. b. What is Alfred's recognized gain or loss if he subsequently sells the property for $145,200? For $85,800? If Alfred sells the property for $145,200, he has a recognized gain of $_______________. If Alfred sells the property for $85,800, he has a recognized loss of $_______________.
At death, Francine owns an interest in a passive activity property (adjusted basis of $160,000, suspended losses of $16,000, and fair market value of $170,000). What is deductible on Francine’s final income tax return?
Monica contributes appreciated property (.e, Adjusted Basis of $65,000 and Fair Market Value of $100,000) to her business entity in a transaction which qualifies for nonrecognition of galin. Monica's ownership interest in the business entity is sbety percent (60%). The business entity later sells the appreciated property for $110,000. The property is not deprecdable. If the entity is a Regular (9 Corporation, Monica's Gross Income is increased from the sale of the property by the Corporation by $41,000, O True False QUESTION 5 Actual Dividends pald to shareholders of a Regular (C) Corporation result in Double Taxation. Likewise, Constructive Dividends (eg. Personal use of corporate property by a shareholder, etc.) result in Double Taxation. O False O True
Matt inherits 125 shares of Chess Corporation stock from his father. The stock cost his father $7,000 and had a $11,000 FMV on the date of his father's death in 2018. The alternate valuation date was not elected. If Matt sells the Chess Corporation stock for $12,400, what would be his taxable gain on the sale? (Taxable gain = Proceeds of sale - Tax basis of stock sold) Matt's taxable gain on the sale of Chess stock is
Ashley inherited all of the property of her aunt Elena, who died last year. Elena’s adjusted basis for the property at the date of death was $1,200,000. The property's fair market value was $4,500,000 at the date of death and $4,800,000 six months after the date of death. Assume that an estate return is filed. What is Ashley’s adjusted basis of the property?
Voytek transfers land worth $200,000 with an adjusted basis of $17,000 to his wife Gosha for her birthday. The land was purchased 3 years ago. Assume no gift tax was paid on the transfer. a) Does Gosha have gross income as a result of the gift? Yes or No. No? b If the answer is no, Explain why. c)What is Gosha basis in the land? d)What is Gosha holding period in the land?