Tabitha sells real estate on March 2 of the current year for $305,200. The buyer, Ramona, pays the real estate taxes of $15,260 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona. Tabitha: s Ramona: b. Calculate Ramona's basis in the property and the amount realized by Tabitha from the sale. Tabitha: S Ramona:

Tabitha sells real estate on March 2 of the current year for $305,200. The buyer, Ramona, pays the real estate taxes of $15,260 for the calendar year, which is the real estate property tax year. Round any division to four decimal places and use in subsequent calculations. Round your final answers to the nearest dollar. Assume a 365-day year. a. Determine the real estate taxes apportioned to and deductible by the seller, Tabitha, and the amount of taxes deductible by Ramona. Tabitha: s Ramona: b. Calculate Ramona's basis in the property and the amount realized by Tabitha from the sale. Tabitha: S Ramona:

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

Judy owns land with an adjusted basis of $610,000 subject to a mortgage of $350,000. On March 15, Judy sells her land subject to the mortgage for $650,000 in cash, a note for $600,000, and property with a fair market value of $120,000. What is the amount realized? a.) $1,370,000 b.) $1,720,000 c.) $1,820,000 d.) $1,250,000
Melba purchases land from Adrian. Melba gives Adrian $600,600 in cash and agrees to pay Adrian an additional $900,900 one year later plus interest at 10%. a. What is Melba's adjusted basis for the land at the acquisition date? b. What is Melba's adjusted basis for the land one year later? $
Karen sells vacant land that was held for investment in her business for $277,000. The land had an adjusted basis of $55,400. The buyer has offered to pay for the land with $67,000 cash at the date of sale and then in three equal installments of $70,000 over the next three years beginning on January 1 of the next year. What is Karen'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 $ LA $ $ tA LA $ 221,600 13,280 70,000 70,000 70,000
Barb earned rent income from her condo by renting the second room to someone during 2021. She lives in the other bedroom and plans to share the expenses 50% between the two (2) bedrooms in her condo. The rest of the details of the rent activities are as follows: Rent income (12 months) $4,550 Repairs (Bathroom and Kitchen) $820 Utilities (100% for the condo) $1,080 Fixtures and decorations $350 What is Barb’s net rental income for 2021 that will be reported on her tax return? _____________
9. The annual insurance premium on Julie’s home is $2,074 and the annual property tax is $1,403. If her monthly principal and interest payment is $1,603, find the adjusted monthly payment including principal, interest taxes and insurance (PITI).
Tobias has a brokerage account and buys on the margin, which resulted in an interest expense of $37,600 during the year. Income generated through the brokerage account was as follows: Municipal interest $75,200 Taxable dividends and interest 376,000 If required, round any division to two decimal places and use in subsequent computations. Round your final answer to the nearest dollar. How much investment interest can Tobias deduct?
George and Peggy Fulwider bought a house from Sally Sinclair for $225,500. In lieu of a 10% down payment, Ms. Sinclair accepted 5% down at the time of the sale and a promissory note from the Fulwiders for the remaining 5%, due in four years. The Fulwiders also agreed to make monthly interest payments to Ms. Sinclair at 10% interest until the note expires. The Fulwiders obtained a loan from their bank for the remaining 90% of the purchase price. The bank in turn paid the sellers the remaining 90% of the purchase price, less a sales commission of 6% of the purchase price, paid to the sellers' and the buyers' real estate agents. (a) Find the Fulwiders' down payment.$ (b) Find the amount that the Fulwiders borrowed from their bank.$ (c) Find the amount that the Fulwiders borrowed from Ms. Sinclair.$
Saved Dillon rented out his home for 9 days during the year for $6,400. He resided in the home for the remainder of the year. Expenses associated with use of the home for the entire year were as follows: $ 3,150 Real property taxes Mortgage interest 12,375 Repairs 1,375 Insurance 1,570 Utilities 5,280 Depreciation 12,800 Dillon's AGI is $134,436 before considering the effect of the rental activity. His AGI after considering the tax effect of the rental use of his home is $
Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the account paid 8% interest, compounded annually, use the appropriate formula to find the future value of her account. $95,037.72$103,940.74 $112,256.00$113,556.00
Brittany purchased an industrial lot in Sudbury for $1,100,000 and it was assessed at 65% of its purchase price. The annual property tax on the lot is 25 mills. a. Calculate the assessed value of the lot. Round to the nearest cent b. Calculate the property tax she would have to pay every year. Round to the nearest cent
Chen bought a vacation property for $18 900.00 down and semiannually mortgage payments of $1342 at the end of each semiannual period for eight years. Interest is 10.4% compounded semiannually. a) What was the purchase price of the property? b) How much interest will Annette pay?
Marilyn was supposed to pay $1.620 to Bernice on March 18. Some time later Marilyn paid Bernice an equivalent payment of $1,67263. allowing fora time value of money of 24% compounded monthly. When did Marilyn make the payment? (Do not round your Irntermediate calculatlons and round your anewer to the neorest month.) Marylin mode the payment months later.