Answer this general accounting problem Pauline sells a parcel of land for $65,000cash, and the buyer assumes Pauline'sliability of $9,000 on the land. Pauline'sbasis in the land is $50,000.What is the gain or loss she will recognize onthe sale?A. $6,000 gainB. $15,000 gainC. $24,000 lossD. $24,000 gain

Explanation of Basis: Basis is the original cost of an asset for tax purposes, typically the…

Answered: Pauline sells a parcel of land for…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter16: Property Transactions: Capital Gains And Losses

Section: Chapter Questions

Problem 25P

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Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property is $30,000 and she receives only the $25,000 down payment in the year of sale, how much is Pat's taxable gain in the year of sale using the installment sales method? $0 $5,000 $17,500 $25,000 $75,000
Nicky receives a car from Sam as a gift. Sam paid 48,000 for the car. He had used it for business purposes and had deducted 10,000 for depreciation up to the time he gave the car to Nicky. The fair market value of the car is 33,000. a. Assuming that Nicky uses the car for business purposes, what is her basis for depreciation? b. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 32,500. What is her recognized gain or loss? c. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 20,000. What is her recognized gain or loss?
Will recognize on the sale ?
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Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of 43. $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda? a. $55,000 b. $60,000 c. $52,500 d. $57,500
Fred and Sarajane exchanged land in a qualifying like-kind exchange. Fred gives up land with an adjusted basis of $11,000 (fair market value of $16,000) in exchange for Sarajane's land with a fair market value of $12,000 plus $4,000 cash. How much gain should Fred recognize on the exchange? a.$4,000 b.$5,000 c.$0 d.$1,000 e.None of these choices are correct
Melba purchases land from Adrian. Melba gives Adrian $355,800 in cash and agrees to pay Adrian an additional $533,700 one year later plus interest at 7.5%. a. What is Melba's adjusted basis for the land at the acquisition date? $ 899,500 x Feedback vCheck My Work Realized gain or loss is the difference between the amount realized from the sale or othe disposition of property and the property's adjusted basis on the date of disposition. Ther it is important to determine the correct adjusted basis for the property. b. What is Melba's adjusted basis for the land one year later? 899,500 x Feedback Check My Work Incorrect Feedback Check My Work Incorrect
Jack and Jill exchange like-kind real estate assets as listed below: Jack's old asset: FMV $50,000; Adjusted Taxable Basis $23,000 Jill's old asset: FMV $70,000; Basis $55,000 If Jack pays Jill cash of $20,000 plus Jack's old asset, how much gain must Jill recognize on this transaction? $5,000 $10,000 $15,000 $20,000
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Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market value of $160,000 for a rental house at the mountains with a fair market value of $148,000 and cash of $12,000. What is Angela’s recognized gain or loss? Group of answer choices $148,000 ($20,000) $12,000 $0

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Pauline sells a parcel of land for $65,000 cash, and the buyer assumes Pauline's liability of $9,000 on the land. Pauline's basis in the land is $50,000. What is the gain or loss she will recognize on the sale? A. $6,000 gain B. $15,000 gain C. $24,000 loss D. $24,000 gain