Top owns 80% of Bottom On January 1, 2018 Bottom sell Land (cost of $60,000) to Top for $100,000. Top holds the Land until December 31, 2021 when it sells it to third parties for $150,000. What worksheet entry is required in 2021. Dr. Gain on Sale $40,000 Cr. Land. $40,000 Dr. Retained Earnings. $40,000 Cr. Gain on Sale. $40,000 Dr. Retained Earnings. $32,000 Cr. Gain on Sale $32,000 Dr. Gain on Sale. $50,000 Cr. Land. $50,000

Top owns 80% of Bottom On January 1, 2018 Bottom sell Land (cost of $60,000) to Top for $100,000. Top holds the Land until December 31, 2021 when it sells it to third parties for $150,000. What worksheet entry is required in 2021. Dr. Gain on Sale $40,000 Cr. Land. $40,000 Dr. Retained Earnings. $40,000 Cr. Gain on Sale. $40,000 Dr. Retained Earnings. $32,000 Cr. Gain on Sale $32,000 Dr. Gain on Sale. $50,000 Cr. Land. $50,000

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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Firm PO and Corporation QR exchanged the following business real estate: Marvin Gardens (exchanged by PO) $ 1,040,000 (715,000) 325,000 $ FMV Mortgage Equity $ Required A Required B Required: a. If PO's adjusted basis in Marvin Gardens was $403,000, compute PO's realized gain, recognized gain, and basis in Boardwalk. b. If QR's adjusted basis in Boardwalk was $78,000, compute QR's realized gain, recognized gain, and basis in Marvin Gardens. Boardwalk (exchanged Complete this question by entering your answers in the tabs below. Realized gain Recognized gain Basis $ by QR) 325,000 -0- 325,000 If PO's adjusted basis in Marvin Gardens was $403,000, compute PO's realized gain, recognized gain, and basis in Boardwalk. Amount
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Hand owns 90% of Finger. In 2015, Hand purchased Land from third parties for $500,000. On January 1, 2018 Hand sells Land to Finger for $800,000. Finger holds the Land until December 31, 2020 and sells it for $2,000,000. How much is consolidated gain on sale of Land for the year ended December 31, 2018 How much is consolidated Land at December 31, 2018 How much is consolidated gain on sale of Land at December 31, 2020
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