Pedro sells investment land on September 1, 2020. Information pertaining to the sale follows:Adjusted basis$ 12,00043,200Selling priceSelling expensesDown paymentFour installment paymentsMortgage assumed by the buyerRequired:Each installment payment is due on September 1 of 2021, 2022, 2023, and 2024 (ignore interest). Determine the tax consequences in2020, 2021, 2022, 2023, and 2024. (Do not round intermediate calculations. Round your final answers to nearest whole dollarvalue.)Year20202021202220232024TotalGainRecognized$6004,0007,20010,4000

Net Income is the difference between total revenue and total expenses of the business. Gain is the…

Answered: Pedro sells investment land on…

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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Data: In 2020, Elaine paid $2,160 of tuition and $900 for books for her dependent son to attend State University this past fall as a freshman. Elaine files a joint return with her husband - AGI $165,500. Question: What is the maximum American opportunity tax credit that Elaine can claim for the tuition payment and books ? Thx, Stephanie
! Required information [The following information applies to the questions displayed below.] Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo: Insurance Mortgage interest Property taxes Repairs & maintenance Utilities Depreciation $ 2,050 7,450 4,200 650 4,650 23,700 During the year, Alexa rented out the condo for 137 days. Alexa's AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income. Assume that in addition to renting the condo for 137 days, Alexa uses the condo for 8 days of personal use. Also assume that Alexa receives $47,750 of gross rental receipts and her itemized deductions exceed the standard deduction before considering expenses associated with the condo and that her itemized deduction for non-home business taxes is less than $10,000 by more than the real property taxes allocated to rental use of the home. Answer the…
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Elizabeth makes the following interest-free loans during the year. Assume that tax avoidance is not a principal purpose of any of the loans. The relevant Federal rate is 5% and that the loans were outstanding for the last six months of the year. Borrower's Net Borrower Amount Investment Income Purpose of Loan Richard $5,000 $800 Gift Woody $8,000 $600 Stock purchase Irene $105,000 $0 Purchase principal residence By how much do each of these loans increase Elizabeth's gross income? If an amount is zero, enter "0". a. Richard is not subject to the imputed interest rules because the $10,000 gift loan exception does apply. Elizabeth's gross income from the loan is $ 0 b. The $10,000 exception does not income producing apply to the loan to Woody because the proceeds were used to purchase assets. Although the $100,000 exception applies to this loan, the amount of imputed interest is 1,000 X.Incorrect is $ 0 ✓. c. None of the exceptions apply gross income from the loan is $ to the loan to…
6. A taxpayer sells a vacation home in 2019 for $150,000 that has an adjusted basis $115,000. The purchaser pays cash of $30,000, assumes the existing mortgage of $110,000, and signs an installment note for the remaining $10,000 plus interest. What is the amount of the total contract price? 6. O a. $30,000 o b. $40,000 Oc. $115,000 o d. $150,000
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Ashley, who is married to Anne and age 30, provides you with the following information from their financial records for 2020. Regular income tax liability $24,668 AMT net positive adjustments 40,000 AMT preferences 10,000 Taxable income 150,400 Calculate their tentative minimum tax amount for 2020 if they file a joint return. a. $0 b. $2,185 c. $22,620 d. $24,360 e. $34,300

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