Peyton sells an office building and the associated land on May 1, please give answer this accounting question Peyton sells an office building and the associated land on May 1,2015. Under the terms of the sales contract, Peyton is to receive$2,351,200 in cash. The purchaser is to assume Peyton's mortgage of$1,410,720 on the property. To enable the purchaser to obtainadequate financing, Peyton is to pay the $141,072 in points chargedby the lender. The broker's commission on the sale is $94,048. Thepurchaser agrees to pay the $28,214 in property taxes for the entirecalendar year.What is Peyton's amount realized?

Step 1: Define Realized IncomeThe revenue generated and received is referred to as realized income.…

Answered: Peyton sells an office building and the…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 34P

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Suzy sells an office building and the associated land on May 10, 2022. Under the terms of the sales contract, Suzy is to receive $450,000 in cash. The purchaser is to assume Suzy's mortgage of $175,000 on the property. To assist the purchaser, Suzy agrees to pay $12,000 of the purchaser's closing costs and the broker's commission on the sale is $37,500. What is the amount realized by Suzy from this sale? O $625,000 O $400,500 O $450,000 O $575,500
On December 30, 2022, Whitney sold a piece of property for $300,600. Her basis in the property was $135,270, and she incurred $3,006 in selling expenses. The buyer paid $15,030 down with the balance payable in $28,557 installments over the next ten years. In addition, the buyer assumed a $45,090 mortgage on the property. Under the installment sales method, what is the total contract price, the total gain on the sale, and the amount of gain reported in 2022? Round any division to two decimal places, and use that amount in subsequent computations. If required, round your final answer to the nearest dollar. Under the installment sales method, the total contract price is_____________, the total gain on the sale is ___________ and the amount of gain reported in 2022 is _____________.
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On January 1, 2021, Mrs. Erich entered into a franchise agreement with KK to market their products. The agreement provides for an initial fee of P15,500,000 payable as follows: P6,500,000 to be paid upon signing of the contract and the balance in five equal annual payments every end of the year starting December 31, 2021. Mrs. Erich signs a non-interest bearing notes for the balance. His credit rating indicates that he can borrow money at 15% interest for a loan of this type. The present value of an annuity of P1 at 15% for 5 periods is 3.352. The agreement further provides that the franchisee must pay a continuing franchise fee equal to 3% of the monthly gross sales. On August 31, the franchiser completed the initial services required in the contract at a cost of P7,290,120 and incurred indirect cost of P475,000. The franchisee commenced business operations on November 30, 2021. The gross sales reported to the franchisor were P1,800,000 for December, 2021. The first installment…
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Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and accumulated depreciation was $27,000 on the date of sale. He collects only the $100,000 down payment in the year of sale. c. Assuming Steve collects $5,000 (not including interest) of the note principal in the year following the year of sale, calculate the amount of income recognized in that year under the installment sale method
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