Problem 12-63 (LO 12-5) Lewis owns 200 shares of stock in Modlin Corporation. His adjusted basis for the stock is $188,250. On December 15, 2022, he sells the stock for $175,500. He purchases 200 shares of Modlin Corporation stock on January 8, 2023, for $175,500. Required: a. What are Lewis's realized and recognized gain or loss on the sale? b. What is Lewis's adjusted basis for the 200 shares purchased on January 8, 2023? c. How would your answers in parts (a) and (b) change if he purchased only 100 shares for $109,400 in January? Note: For all requirements, if no gain or loss is recognized, select "No gain or loss". a. a. b. Adjusted basis of shares C C. C. Adjusted basis of shares Amount < Prev 17 of 20 www Next > 6 W

Problem 12-63 (LO 12-5) Lewis owns 200 shares of stock in Modlin Corporation. His adjusted basis for the stock is $188,250. On December 15, 2022, he sells the stock for $175,500. He purchases 200 shares of Modlin Corporation stock on January 8, 2023, for $175,500. Required: a. What are Lewis's realized and recognized gain or loss on the sale? b. What is Lewis's adjusted basis for the 200 shares purchased on January 8, 2023? c. How would your answers in parts (a) and (b) change if he purchased only 100 shares for $109,400 in January? Note: For all requirements, if no gain or loss is recognized, select "No gain or loss". a. a. b. Adjusted basis of shares C C. C. Adjusted basis of shares Amount < Prev 17 of 20 www Next > 6 W

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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LO.2 On May 9, 2018, Calvin acquired 250 shares of stock in Hobbes Corporation, a new startup company, for $68,750. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2020, Calvin sold all of his Hobbes stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale.
am. 110.
Chi has the following transactions in Smoke Corp. and Mirrors Corp. shares: Smoke Mirror May 1, 2018 Purchase @ $25.00 100 @ $22.50 100 December 20, 2018 Sale 100 @ $28.00 100 @ $24.00 January 3, 2019 Purchase N/A 100 @ $23.20 June 1, 2019 Sale N/A 100 @ $26.00 Chi's taxable capital gains for 2018 and 2019 are: $275 for 2018, $140 for 2019 $225 for 2018, $90 for 2019 $275 for 2018, $90 for 2019 $225 for 2018, $140 for 2019
Exercise 4-21 (Algorithmic) (LO. 1, 2, 3) Jocelyn contributes land with a basis of $48,500 and fair market value of $72,750 and inventory with a basis of $21,400 and fair market value of $32,100 in exchange for 100% of Zion Corporation stock. The land is subject to a $12,125 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ in her stock. treated as boot under
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Ma4. Please give only typed answer
B20. Your client, James, is the 100% owner Best Corporation, Inc., a C Corporation. James wants to sell a building he owns to Best Corporation for its fair market value (FMV) of $100,000. The property’s adjusted basis is $150,000. James asks you if he will be able to deduct the $50,000 loss on the property if he sells it to Best. Can James recognize the loss? a. Yes, because it is being sold at its FMV. b. Yes, because individuals and corporations are never considered elated parties for purposes of loss disallowance. c. No, because James and Best are considered related parties for purposes of loss disallowance under IRC 267. d. No, because James and Best are considered related parties for purposes of loss disallowance under IRC 318. e. No, not unless James and Best sign an agreement stating that the sale is bona fide. If they do so, James will be allowed to deduct the loss.
Assume, for purposes of this question only, that Susan acquired 2,000 shares of Hawk Corporation stock for $80,000 on March 31, 2014. On March 1, 2023, she sells 125 shares for $3,750. On March 22, 2023, she purchases 135 shares of Hawk Corporation stock for $4,725. a. What is Susan’s realized gain or loss from the sale on March 1, 2023? b. What is Susan’s recognized gain or loss from the sale on March 1, 2023? c. What is Susan’s basis in the 135 shares purchased on March 22, 2023? d. When does Susan’s holding period begin for the 135 shares
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calculate the recognized gain or loss to the seller and the adjusted basis to the buyer kiera sells parchment inc stock (adjusted basis $17,000) to phillip heer brother for its fair market value of $12,000?
Q.98. Smith and Jones create SJ Corporation. Smith contributes property with a fair market value of $80,000, and Jones contributes cash of $70,000. Each receives a 50% share in the corporation, and the corporation is valued at $140,000 immediately after the formation. Smith's property has an adjusted basis of $25,000, and is subject to a $10,000 mortgage, which is assumed by the company. What gain will Smith recognize in this situation? A. $0 B. $10,000 C. $15,000 D. $25,000