QUESTION 3On September 30 of last year, Rex received some investment land from Holly as a git. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time ofthe git. Holly acquired the land five years ago. What is the amount of Rex's recognized gain (loss) if he sells the land on May 12 this year at $44,000?QUESTION 4Franco converted a building from personal to business use in May 2017 when the fair market value was $50,000. He purchased the building in July 2014 for $80,000. OnDecember 15 of this year, Franco sells the building for $39.000. On the date of the sale, the accumulated depreciation on the building was $5,565. What is Franco'srecognized gain or loss on the sale?

If Sale value of land is less than donor Adjusted basis and greater than fair market value, then No…

QUESTION 3 On September 30 of last year, Rex received some investment land from Holly as a git. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the git. Holly acquired the land five years ago. What is the amount of Rex's recognized gain (loss) if he sells the land on May 12 this year at $44,000?

QUESTION 3 On September 30 of last year, Rex received some investment land from Holly as a git. Holly's adjusted basis was $50,000 and the land was valued at $40,000 at the time of the git. Holly acquired the land five years ago. What is the amount of Rex's recognized gain (loss) if he sells the land on May 12 this year at $44,000?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 7 of 10. Stig purchased a house in 2020 and rented it out the entire time he owned it. His adjusted basis in the property before depreciation is $262,500 ($45,000 attributable to land). In 2022, Stig sold the property for $320,000 with $7,500 in deductible expenses. The total allowable depreciation was $19,093. What is Stig's taxable gain on the disposition of the building? $19,093 $22,345 $30,907 $60,531
29 Leonard withdrew $10,000 from his RRSP under the Home Buyers' Plan on August 12th of last year and used the amount as a deposit on the purchase of a new house. However, he realized that he needed another $8,000 to help finance the downpayment and made a second HBP withdrawal on September 25th of last year. He will take possession of the property on April 1st of this year. On January 20th of this year, he withdrew another $7,000 under the HBP to buy some appliances. Based on his withdrawals, how much does Leonard have to include as taxable income? a) $0 b) $5,000 c) $7,000 d) $15,000
I need all to be answered please form a to e Answer for a. (yes or no) b. (yes or no)
Please show the works
Hello, Can you help me with the below question? Three years ago, Louise bought a rental house for $450,000. Last year, she built a small addition for $50,000. In 2021, she decides to sell the house. She has taken depreciation of $21,000. What is Louise's adjusted basis? a.$450,000 b.$429,000 c.$500,000 d.$479,000
Explanation
4 0 Frankie purchased a freehold townhouse which she used to generate rental income. She originally acquired the unit at cost of $350,000. Over the years, she had claimed $27,000 in CCA, such that her UCC at the beginning of the year was $323,000. This year, she sold the unit for $325,000. She incurred selling expenses of $5,000. Frankie purchased another rental property before the end of the year for $225,000. What statement is true? Oa) Frankie has neither a recapture, nor a terminal loss. Ob) Frankie has a terminal loss of $3,000. Oc) Frankie has a recapture of $25,000. O d) Frankie has a terminal loss of $5,000.
Barbara sells vacant land that was held for investment in her business for $274,000. The land had an adjusted basis of $57.540. The buyer has offered to pay for the land with $61,000 cash at the date of sale and then in three equal installments of $71,000 over the next three years beginning on January 1 of the next year. What is Barbara's realized and recognized gain in each year of the sale? Assume that adequate interest is paid in addition to the numbers shown above. Realized gain Recognized gain in year 1 Recognized gain in year 2 Recognized gain in year 3 Recognized gain in year 4 $ $ $ $ 216,460 45.457 48,190 48,190 48,190
Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of 43. $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda? a. $55,000 b. $60,000 c. $52,500 d. $57,500
Item 5 Xavier bought furniture and fixtures (7-year property) on September 15, 2023, for $1,185,000. He elects to expense as much as possible under Section 179 but does not elect the 100% bonus. Xavier's earned income for the year is $1,200,000. What is the maximum deduction Xavier can take in 2023 for the equipment?
Question: Sam wants to purchase land owned by Kiara for use in his trade or business. Kiara's basis in the land is $350,000, and Sam has offered to pay $980,000 if she will sell within the next ten days. Kiara is interested in selling but wants to avoid gain recognition on the sale. Is there any way that Kiara could sell to Sam and still avoid gain recognition? Give Short Explanation of Capital Gains and 1031 exchange.
None