Solve this financial accounting question not use ai and chatgpt Peter Minuit bought an island from the ManhattoesIndians in 1626 for $24 worth of beads and trinkets.The 1991 estimate of the value of the land on thisisland was $12 billion (1 billion = 109). What rate ofreturn would the Indians have received if they hadretained title to the island rather than selling itfor $24?

Step 1: Define Rate of ReturnThe rate of return on investment represents the percentage return for…

Answered: Peter Minuit bought an island from the…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter8: Property Transactions: Capital Gains And Losses, Section 1231 And Recapture Provisions

Section: Chapter Questions

Problem 10CE

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Kaye sold his residential house and lot located in Manila on January 5, 2018 for 8,000,000. The property was purchased in 2005 for 3,000,000. The current market value of the property at the time of sale was:BIR Commissioner’s zonal valuation 9,000,000City Assessor’s schedule of values 6,000,000What is the capital gains tax on the sale? 300,000 360,000 480,000 540,000
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On January 1, 2023, Marcus Abbott permanently leaves Canada becoming a non-resident. At that time, his only property consists of his principal residence and a small apartment building. His principal residence was purchased several years ago at a cost of $650,000. Of this total $150,000 relates to the land and $500,000 to the building. The current FMV of his residence is $975,000. The value of the land is unchanged at the time of his departure. The apartment building had a capital cost of $870,000, with $170,000 of this total allocated to the land and $700,000 to the building. The building had a January 1, 2023 UCC balance of $476,000. At the time of his departure, the FMV of the apartment building is $1,200,000, with the value of the land remaining at $170,000 and the building at $1,030,000. What is the minimum amount to be added to Mr. Abbott's 2023 net income with respect to terminating his residency in Canada? Select one: A. $ 655,000. B. $724,000 C. $559,000 D. Nil
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Danielle has an apartment building that she bought in 1997 for 900,000. The total depreciation taken equals 200,000. In 2018 she traded it with a vacant parking lot having a fair market value of 800,000. This is considered a like-kind exchange. What is her basis in the parking lot?
Key Corp. plans to replace a production machine that was acquired several years ago. Acquisition cost is P450,000 with salvage value of P50,000. The machine being considered is worth P800,000 and the supplier is willing to accept the old machine at a trade-in value of P60,000. Should the company decide not to acquire the new machine, it needs to repair the old one at a cost of P200,000. Tax-wise, the trade-in transaction will not have any implication but the cost to repair is tax-deductible. The effective corporate tax rate is 35% of net income subject to tax. For purposes of capital budgeting, the net investment in the new machine is * A. P540,000 B. P610,000 C. P660,000 D. P800,000 Other:
Abbott exchanges land in a transaction that lacks commercial substance. The net book value of the land exchanged is $50,000. In exchange Abbott receives land with a fair value of $60,000 and $20,000 in cash. What is the gain that Abbott should recognize?
Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $520,000 and a fair value of $740,000. Kapono paid $54,000 cash to complete the exchange. The exchange has commercial substance. Required: What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the fair value of the farmland given is $416,000 instead of $740,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the same facts as Requirement 1 and that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land? Assume the same facts as Requirement 2 and that the exchange lacked commercial substance. Assume the fair value of the farmland given is $416,000 instead of $740,000. What is the amount of gain or loss that…
Six years ago, Donna purchased land as an investment. The land cost $150,000 and is now worth $480,000. Donna plans to transfer the land to Development Corporation, which will subdivide it and sell individual tracts. Development's income on the land sales will be ordinary in character. Read the requirements. Requirement a. What are the tax consequences of the asset transfer and land sales if Donna contributes the land to Development in exchange for all its stock? on the transfer of land to Development Corporation. Donna recognizes no gain or loss Development's basis in the land will be $ 150,000. All gain on the subsequent sales will be to Development. This alternative results in the pre-contribution gain post-contribution profit earned from subdividing the land ordinary income that accrued prior to Donna's transfer and the being taxed at a 21% tax rate. Requirement b. In what alternative ways can the transaction be structured to achieve more favorable tax results? Assume Donna's…
Explanation
Oriole Company buys land for $121000 in 2021. As of 3/31/22, the land has appreciated in value to $127800. On 12/31/22, the land has an appraised value of $131100. By what amount should the Land account be increased in 2022? $0. $3300. $10100. $6800.
During 2009, Aisin Seiki Limited sold 2,000 square meters of prime commercial zoned land to a builder for ¥5,000,000. The builder gave Aisin Seiki Limited a ¥1,000,000 down payment and will pay the remaining balance of ¥4,000,000 to Aisin Seiki Limited in 2010. Aisin Seiki Limited purchased the land in 2002 for ¥3,000,000. Using the installment method, how much profit will Aisin Seiki Limited report for 2009 (in Japanese Yen, \)? Select one: O a. 600,000 b. 400,000 O c. 1,000,000 O d. 3,000,000 e. 0

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