Problem 4-8 Sale of a Personal Residence (LO 4.6) On July 1, 2021, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $50,000. The expenses associated with the sale of his home total $21,000. On December 15, 2021, Ted purchases and occupies a new residence at a cost of $225,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain Recognized gain Adjusted basis of the new residence

Problem 4-8 Sale of a Personal Residence (LO 4.6) On July 1, 2021, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $50,000. The expenses associated with the sale of his home total $21,000. On December 15, 2021, Ted purchases and occupies a new residence at a cost of $225,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain Recognized gain Adjusted basis of the new residence

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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Lisa’s Darwin Home Lisa sold her home in Darwin (contract date September 2019, settlementDecember 2019), receiving $1,220,000 at settlement. This is after legal fees($12,000), advertising ($2,000) and real estate commissions ($25,000) werededucted. Records indicate that Lisa purchased the property in 2002 (contract dateJanuary, settlement March) for $653,000. Legal fees, commissions andadvertising of $8,000 were also incurred. Lisa moved in within 6 months, selling her former residence during thattime. Over the ownership period, Lisa rented the property for three yearsbeginning December 2010, with $65,000 of $120,000 in non-capitalcosts claimed against rental income. The property was valued at$890,000 at the time it began being rented. SculptureLisa gave a sculpture, valued at $18,900, to her friend in June 2020. Thesculpture was purchased for $480 in December 2000 and repaired in March2016 for $1,250. VaseWhen Lisa was playing with her cat in September 2019, the cat…
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QUESTION 30 grandmother. The grandmother did not have any gift taxes due. Two years later. John sold the building for S40,000. What was his gain or (losa) on this transaction O $15,000 Gain O $2,500 Loss O $15,000 Loss O $2,500 Gain O No Gain or Loss
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Exercise 14-22 (LO. 3) Juliana purchased land three years ago for $50,000. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $70,000. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. a. Tom's basis in the land is $ and he has a realized of $ on the sale. b. Assume, instead, that the land has a fair market value of $45,000 on the date of the gift, and that Tom sold the land for $43,000. Tom's basis in the land is $ and he has a realized of $ on the sale.
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