QUESTION 30grandmother. 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 transactionO $15,000 GainO $2,500 LossO $15,000 LossO $2,500 GainO No Gain or Loss

Gain or loss of Transaction To determine the gain or loss of the transaction which is the amount…

QUESTION 30 John received a bulding as a gift from his grandmother. At the time of the gift the building had a FMV or $42,500 and an adjusted basis of S5.000 to Jhns grandmother. The grandmother did not have any git taxes due. Two years later, John sold the bulding for $40.000. What was his gain or (onn) on this ansaction O $15,000 Gain O $2,500 Loss O $15,000 Loss O $2,500 Gain O No Gain or Loss

QUESTION 30 John received a bulding as a gift from his grandmother. At the time of the gift the building had a FMV or $42,500 and an adjusted basis of S5.000 to Jhns grandmother. The grandmother did not have any git taxes due. Two years later, John sold the bulding for $40.000. What was his gain or (onn) on this ansaction O $15,000 Gain O $2,500 Loss O $15,000 Loss O $2,500 Gain O No Gain or Loss

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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My A married decedent left the following inherited properties as part of his gross estate amounting to P 15,000,000. Land P 1,500,000 500,000 The value of the land when inherited 2 ½ year ago was P1,200,000 and was subject to a mortgage of P200,000 which was paid by the present decedent before he died. The shares of stock were valued Shares of stock CF An= at P600,000. Skip The estate's executor has claimed the following deductions; P600,000 350,000 150,000 300,000 400,000 700,000 5,000,000 Actual funeral expenses Judicial expenses Claims against insolvent Legacy to National Government Medical Expenses Amount received by heirs under RA 4917 Family Home Compute for the vanishing deduction
32 Xavier bought his chicken farm property for $60,000. When he retired, he sold the property to his granddaughter, Julia, for $115,000. At the time of the transfer, the farm was valued at $600,000. Xavier had already used his lifetime capital gains exemption on the disposition of a previous farm property. What was Julia's adjusted cost base (ACB)? O a) $60,000 O b) $115,000 O c) $55,000 O d) $600,000 Previous Question Next Question View Summary CFP®, CERTIFIED FINANCIAL PLANNER® and are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. (FPSB). FP Canada" is the marks licensing authority for the CFP marks in Canada, through agreement with FPSB.
29 Kevin owns a country property that he purchased in 1967 for $30,000. The property was worth $25,000 at the end of 1971; he sold it this year for $155,000. Kevin does not use the principal residence exemption on this property. Using the tax-free zone method, what will be his taxable capital gain? a) $62,500 Ob) $65,000 Oc) $83,333 d) $130,000
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QUESTION 5 Howard and Raj are married out of community of property. The couple has two daughters, Penny (16) and Bernadette (28). Bernadette immigrated to Switzerland two years ago; she became a permanent resident of that country. Howard started a trust with their daughters as beneficiaries. Howard donated a house to the trust. The trust rents the house to tenants. The trust received R98,000 in rent for the year. The rent received was distributed to each daughter equally. Required With reference to legislation and reasons, calculate the amount to be included in the income of Howard and his daughters. Total M
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#54 of 85 Question ID: 1251845 Last year, your client and his wife gave their adult son a one-third interest in a commercial office building. Each has a one-third interest as tenants in common. If your client dies while still owning the property as a tenant in common, an estate tax implication of this form of property ownership is that A) one-third of the value of the property will be included in your client's gross estate. B) one-half of the value of the property will be included in your client's gross estate. C) the entire value of the property will be included in your client's gross estate because his estate cannot prove contribution by the other tenants in common. D) your client's estate will be entitled automatically to a marital deduction of one-half of the date-of-death value.
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