on june 1st jaden contributed 7000 ab\amd properrty with an adjusted basis of 9000 and a fair market value of 15000 he was relieved also of his 20000 shares of parnership liabilities what is jeromes reconiged gain from the sales of his partnership interest 7000 9000 16000 22000

on june 1st jaden contributed 7000 ab\amd properrty with an adjusted basis of 9000 and a fair market value of 15000 he was relieved also of his 20000 shares of parnership liabilities what is jeromes reconiged gain from the sales of his partnership interest 7000 9000 16000 22000

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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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

on june 1st jaden contributed 7000
ab\amd properrty with an adjusted
basis of 9000 and a fair market value
of 15000 he was relieved also of his
20000 shares of parnership liabilities
what is jeromes reconiged gain from
the sales of his partnership interest
7000
9000
16000
22000

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