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REQUIRED: calculate the capital gain or lss for each. Also, indicate which type of property this would be considered.

REQUIRED: calculate the capital gain or lss for each. Also, indicate which type of property this would be considered.

FINANCIAL ACCOUNTING
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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Mr. Gaetano has sold a number of assets in the current year: An extensive coin collection, which has a current FMV of $23,500. The total cost of acquiring the coins is $17,600. There were no selling costs. A rare 17th-century manuscript he inherited from his mother. His mother paid $4,000 for the manuscript, which had an estimated FMV of $42,000 at the time of her death. Since several copies of the same manuscript have been found (since her death), and so he had to sell it for $8,500. A Lawren Harris oil painting that he acquired for $275,000. The painting sold for $350,000 and the auction house charged a commission of 20% on the sales price. REQUIRED: calculate the capital gain or loss for each. Also, indicate which type of property this would be considered.
Transcribed Image Text:Mr. Gaetano has sold a number of assets in the current year: An extensive coin collection, which has a current FMV of $23,500. The total cost of acquiring the coins is $17,600. There were no selling costs. A rare 17th-century manuscript he inherited from his mother. His mother paid $4,000 for the manuscript, which had an estimated FMV of $42,000 at the time of her death. Since several copies of the same manuscript have been found (since her death), and so he had to sell it for $8,500. A Lawren Harris oil painting that he acquired for $275,000. The painting sold for $350,000 and the auction house charged a commission of 20% on the sales price. REQUIRED: calculate the capital gain or loss for each. Also, indicate which type of property this would be considered.
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