Peyton sells an office building and the associated લંડ 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?

To calculate Peyton's amount realized, we sum up the total consideration received and subtract any…

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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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 _____________.
Zahava Corporation sells equipment to Ari Company for $700,000. Ari does not need the equipment until December 31, 2021, but agrees to pay $600,000 immediately on December 31, 2019, in order to assist Zahava with finances. The remaining $100,000 is due upon delivery on December 31, 2021. Zahava typically can borrow at 5%. 1. Prepare the journal entry Zahava makes to record the receipt of $600,000 on December 31, 2019. 2. Prepare the jornal entry, if any, Zahava makes in 2020. 3. Prepare the journal entry Zahava makes to record delivery of the goods and collection of the remaining $100,000 on December 31, 2021.
On January 1, 2019, Fulton Inc. enters into a contract with Gibson to deliver goods. Gibson pays $100,000 at the time the contract is signed, at which time the goods are transferred and Fulton’s performance obligation is complete. In addition, Gibson agrees to pay Fulton $100,000 on December 31, 2019, and December 31, 2020. If Fulton entered into a financing arrangement with Gibson it would charge an interest rate of 9%. Please assist with the journal entries. Thank you! There are 8 journal entries in all.
On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor) for cash of $2,000,000. The fair value of the building at that time is $1,800,000; the carrying amount immediately before the transaction is $1,000,000. At the same time, TomCo enters into a contract with MacCo for the right to use the building for 19 years, with annual payments of $120,000 payable at the end of each year. The interest rate implicit in the lease is 4.5%, which results in a present value of the annual payments of $1,459,200. The transfer of the asset to MacCo has been assessed as meeting the definition of a sale under PSAK 72. Discuss the implication of the transactions and state the journal entries on January 1, 2020
On January 1, 2025, Splish Co. sells land for which it had paid $705,700 to Sargent Company, receiving in return Sargent's zero- interest-bearing note for $900,000 payable in 5 years. What entry would Splish make to record the sale, assuming that Splish frequently sells similar items of land for a cash sales price of $650,000? (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) Date Account Titles and Explanation Jan. 1 Debit Credit
On January 1, 2019, Park Company accepted a 36,000, non-interest-bearing, 3-year note from a major customer in exchange for used equipment. The equipment had originally cost Park 200,000 and had a book value of 20,000 on the date of the sale. At the 12% imputed interest rate for this type of loan, the present value of the note is 25,500 on January 1, 2019. Park uses the effective interest rate. What is the carrying value of the note receivable on Parks December 31, 2019, balance sheet? a. 28,560 b. 29,000 c. 32,500 d. 36,000
On January 1, 2020, Tom Co (A seller-lessee) sells a building to MacCo (an unrelated buyerlessor) for cash of CU2,000,000. The fair value of the building at that time is CU1,800,000; the carrying amount immediately before the transaction is CU1,000,000. At the same time, TomCo enters into a contract with MacCo for the right to use the building for 18 years, with annual payments of CU120,000 payable at the end of each year. The interest rate implicit in the lease is 4.5%, which results in a present valueof the annual payments of CU1,459,200. The transfer of the asset to MacCo has been assessed as meeting the definition of a sale under PSAK 72.Discuss the implication of the transactions and state the journal entries on January 1, 2020
On 1 July 2019, Cassblanka Ltd sells a construction vehicle to Tradon Ltd. The vehicle cost Cassblanka Ltd $19,500. Rather than selling the item for a cash price or a short-term claim for cash of $22,500, Cassblanka Ltd accepts a promissory note that requires Tradon Ltd to make five annual payments of $5,000 each, the first one to be made on 30 June 2020. The difference between the gross receipts and the current sales price represents interest revenue to be earned by Cassblanka Ltd over the period of the note. The implicit interest in the arrangement is 10 per cent. Required: Provide the necessary journal entries for Cassblanka Ltd for the year ended 30 June 2020 and 30 June 2021 to record the selling of construction vehicle.
A7
On June 30, 2021, Kimberly Farms purchased custom-made harvesting equipment from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the equipment is not known, but an 8% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Kimberly initially value the equipment? How much interest expense will Kimberly recognize in its income statement for this note for the year ended December 31, 2021?
Riker receives $45,000 from Troy as payment for a vehicle that has a fair value of $56,500. The $45,000 constitutes full payment for the vehicle as specified in the sales contract. Assume that the time value of money is viewed as significant for this contract. Required: (a) Did Troy pay Riker before or after delivery of the vehicle? (b) Prepare the journal entry Riker would make to record receipt of Troy’s payment, assuming no interest revenue or interest expense had been recorded previously. (c) Prepare the journal entry Riker would make to record delivery of the vehicle, assuming no interest revenue or interest expense had been recorded previously.
On January 1, 2018, Byner Company purchased a used tractor. Byner paid $5,000 down and signed a noninterest-bearing note requiring $25,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 10% properly reflects the time value of money for this type of loan agreement. Thecompany’s fiscal year-end is December 31.Required:1. Prepare the journal entry to record the acquisition of the tractor. Round computations to the nearest dollar.2. How much interest expense will the company include in its 2018 and 2019 income statements for this note?3. What is the amount of the liability the company will report in its 2018 and 2019 balance sheets forthis note?

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