Do fast this question answer general Accounting Ron's building, which was used in his business, was destroyed in a fire.Ron's adjusted basis in the building was $210,000, and its FMV was$330,000. Ron filed an insurance claim and was reimbursed $300,000. Inthat same year, Ron invested $240,000 of the insurance proceeds in anotherbusiness building. Ron will recognize the gain of:a. $30,000b. $0c. $60,000d. $90,000

Step 1: Calculate the realized gainStep 2: Determine the amount reinvestedStep 3: Calculate the…

Answered: Ron's building, which was used in his…

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter7: Property Transactions: Basis, Gain And Loss, And Nontaxable Exchanges

Section: Chapter Questions

Problem 6BCRQ

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Oscar owns a building that is destroyed in a hurricane. His adjusted basis in the building before the hurricane is $130,000. His insurance company pays him $140,000 and he immediately invests in a new building at a cost of $142,000. What is the amount of recognized gain or loss on the destruction of Oscar's building? $0 $10,000 gain $8,000 gain $12,000 gain $2,000 loss
Chad owned an office building that was destroyed in a tornado. The area was declared a Federal disaster area. The adjusted basis of the building at the time was 890,000. After the deductible, Chad received an insurance check for 850,000. He used the 850,000 to purchase a new building that same year. How much is Chads recognized loss, and what is his basis in the new building?
John owns a second home in Palm Springs, CA. During the year, he rented the house for $5,000 for 56 days and used the house for 14 days during the summer. The house remained vacant during the remainder of the year. The expenses for the home included $5,000 in mortgage interest, $850 in property taxes, $900 for utilities and maintenance, and $3,500 of depreciation. What is John's deductible rental loss, before considering the passive loss limitations? $200 $875 $2,500 $3,200 $0
Ron's building, which was used in his business, was destroyed in a fire. Ron's adjusted basis in the building was $210,000, and its FMV was $330,000. Ron filed an insurance claim and was reimbursed $300,000. In that same year, Ron invested $240,000 of the insurance proceeds in another business building. Ron will recognize the gain of: a. $30,000 b. $0 c. $60,000 d. $90,000
Can you please answer the general accounting question?
Greg Grotto exchanged an eight-unit apartment building for a four-unit apartment building. His adjusted basis for the eight-unit building was $320,000 and the fair market value was $400,000. The fair market value of the four-unit building he received, which was subject to a $40,000 mortgage, was $440,000 on the date of the transaction. How much gain does Greg need to recognize? a. $120,000 b. $80,000 c. $48,000 d. $40,000 e. $0 Please do not give solution and formulae in image format.. thanku
Tyson owns a condominium near Laguna Beach, California. This year, he incurs the following expenses inconnection with his condo:Insurance $ 1,000Mortgage interest 7,500Property taxes 3,200Repairs and maintenance 800Utilities 1,700Depreciation 5,700During the year, Tyson rented the condo for 100 days, receiving $25,000 of gross income. He personallyused the condo for 60 days. Assume Tyson uses the Tax Court method of allocating expenses to rental useof the property. Tyson itemizes deductions, and the sum of his itemized deduction for non-home businesstaxes and the real property taxes allocated to rental use of the home is less than $10,000. What is Tyson'snet rental income for the year (assume this is not a leap year)?
Mrs. V paid the following expenditures in the current year. Interest on line of credit ($20,000 outstanding for the entire year) $1,000 Investment management fees for her registered retirement savings plan 6,000 Investment management fees for her non-registered investments 800 Legal fees related to the acquisition of a rental property 1,200 The line of credit is mostly for the purchase of non-registered investments, made several years ago. All of the investments are still owned. However, $5,000 of the total outstanding principal was used to renovate her home last year. The rental property was purchased late in the year. No rental income was received in the year. What is the total amount that she can deduct on her personal income tax return for the current year, in respect of these expenditures? A. 1,550 B. 1,800 C. 2,750 D. 3,000
Mrs. V paid the following expenditures in the current year. Interest on line of credit ($20,000 outstanding for the entire year) Investment management fees for her registered retirement savings plan Investment management fees for her non-registered investments Legal fees related to the acquisition of a rental property $1,550 $1,000 The line of credit is mostly for the purchase of non-registered investments, made several years ago. All of the investments are still owned. However, $5,000 of the total outstanding principal was used to renovate her home last year. O $1,800 6,000 The rental property was purchased late in the year. No rental income was received in the year. O $2,750 800 What is the total amount that she can deduct on her personal income tax return for the current year, in respect of these expenditures? O $3,000 1,200
Hello, I need help solving this accounting problem.
Kong originally sold his home for $96,000. At that time, his adjusted basis in the home was $99,000. Five years later, he repossessed the home when the balance of the note was $91,000. He resold it within one year for $105,000. Original sale expenses were $1,250, and resale expenses were $1,550. Repossession costs were $3,000. He incurred $1,000 for improvements prior to the resale. What is Kong's recomputed gain? a. $4,200 b. $6,800 c. $11,000 d. $14,000
Harvey rents his second home. During the year, Harvey reported a net loss of $46,500 from the rental. If Harvey is an active participant in the rental and his AGI is $83,200, how much of the loss can he deduct against ordinary income for the year? Multiple Choice ___ $46,500. ___ $25,000. ___ $10,750. ___ $0

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