On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? (Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000
and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount
and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? (Enter NA if a
situation is not applicable. Leave no answer blank. Enter zero if applicable.)
c. Land sold for $45,000
Amount
Transcribed Image Text:On September 30 of last year, Rex received some investment land from Holly as a gift. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. Holly acquired the land five years ago. What are the amount and character of Rex's recognized gain (loss) if he sells the land on May 12 this year at the following prices? (Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) c. Land sold for $45,000 Amount
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