I want to correct answer Vijay sells land and receives $5,000 cash, a motorcycleworth $1,600, and two tickets to the Super Bowl with atotal face value (cost) of $800 but worth $1,200. Inaddition, the buyer assumes a mortgage on the land of$12,000. What is Vijay's amount received in thistransaction?a.$5,000b. $19,800c. $7,800d. $20,200e. $8,200

Sum up the value of everything he received to calculate Vijay's amount received in this…

Answered: Vijay sells land and receives $5,000…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter4: Additional Income And The Qualified Business Income Deduction

Section: Chapter Questions

Problem 4MCQ: Vijay sells land and receives $5,000 cash, a motorcycle worth $1,600, and two tickets to the Super...

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Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted basis of 43. $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda? a. $55,000 b. $60,000 c. $52,500 d. $57,500
Joe buys a piece of land on January 3rd of the current year. He pays $10,000 in cash. 1) Suppose instead the land is subject to a mortgage of $3,000 and Joe receives$12,000 in cash and the buyer assumes Joe’s mortgage on the land. Does Joe realize a gain or loss and if so how much is it? 2) Suppose Joe instead received a piece of jewelry worth $12,000 and the buyer assumes Joe’s mortgage on the land. Does Joe realize a gain or loss and if so, how much is it? note: if you can't answer both, please answer question number 2
Pat sells land for $25,000 cash and a $75,000 5-year note. If her basis in the property is $30,000 and she receives only the $25,000 down payment in the year of sale, how much is Pat's taxable gain in the year of sale using the installment sales method? $0 $5,000 $17,500 $25,000 $75,000
Nicky receives a car from Sam as a gift. Sam paid 48,000 for the car. He had used it for business purposes and had deducted 10,000 for depreciation up to the time he gave the car to Nicky. The fair market value of the car is 33,000. a. Assuming that Nicky uses the car for business purposes, what is her basis for depreciation? b. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 32,500. What is her recognized gain or loss? c. Assume that Nicky deducts depreciation of 6,500 and then sells the car for 20,000. What is her recognized gain or loss?
A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of S100 and is subject to a mortgage of S40. A) What are the consequences to each of the parties? B) Suppose in that the mortgage was placed on the property immediately before the transfer to Newco. A wanted cash in order to buy a yacht to be used for personal purposes, so he took out a mortgage on the land. Would this change your answer C) Suppose instead that the mortgage was for $60. Suppose further that this mortgage was incurred on the purchase of the property many years ago. Would this change your answer? D) Same as (c) except that A also transfers accounts payable of $10. A is a cash basis taxpayer. How would this change your answer?
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
Angela exchanges a rental house at the beach with an adjusted basis of $180,000 and a fair market value of $160,000 for a rental house at the mountains with a fair market value of $148,000 and cash of $12,000. What is Angela’s recognized gain or loss? Group of answer choices $148,000 ($20,000) $12,000 $0
What is the sale?
Maud exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental house at the mountains with a fair market value of $180,000 and cash of $20,000. What is the recognized gain or loss? a. ($20,000) b. ($25,000) c. None of these d. $20,000 e. $0
Miaka sold her personal property in 2018, with details as follows: Cost ₱ 425,000 Mortgage assumed by the buyer 510,000 Installment collection schedule: 2018 140,000 2019 140,000 2020 60,000 How much is the selling price? SOLUTION: 140,000 + 140,000 + 60,000=340,000 How much is the contract price? How much is the initial payments? How much is the realized gross profit for 2018? How much is the realized gross profit for 2019? How much is the realized gross profit for 2020?
Job purchased land as an investment on January 12, 2018, for $80,000. On January 31, 2021, Job sold the land for $33,000 cash. In addition, the purchaser assumed the mortgage of $62,000 on the land. What is the amount realized (not gain realized) on the sale of the land? a.$10,000 b.$23,000 c.$95,000 d.$103,000 e.None of these choices are correct.

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