Which of the following statements are true?
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LiO Company transferred an old asset with a $13,600 adjusted tax basis in exchange for a new asset worth $11,000 and $1,500 cash. Which of the following statements are true?
a) If the exchange is taxable, LiO recognizes an $1,100 loss.
b) If the exchange is nontaxable, LiO recognizes no loss.
c) If the exchange is nontaxable, LiO’s tax basis in the new asset is $12,100
d) If the exchange is nontaxable, LiO recognizes a $1,500 Loss
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- Tesco Incorporated and WW Company exchanged like-kind assets. Tesco's asset had an $82,000 FMV and $55,900 adjusted tax basis, and WW's asset had an $85,500 FMV and a $27,200 adjusted tax basis. Tesco paid $8,500 cash to MW as part of the exchange. Calculate a) WW's and Tesco's realized and recognized gain b) WW's and Tesco's basis for newly acquired assetKris, Inc. sold its vacant lot to Moca Corp. for P 10,000,000 which it acquired at a cost of P 5,000,000. The fair market value of the said property per tax declaration is P 12,000,000, while its zonal value is P 15,000,000. How much is the income tax applicable on the transactions? P 1,500,000 P 900,000 P 720,000 P 600,000A U.S. tax-exempt entity investor held a real estate asset (a parcel of land) that that was purchased for $50,000,000, was held for 10 years, and will now be sold for $90,000,000. At the time of the sale, there was $5,000,000 outstanding on the loan that was used to acquire the land (ignore interest accruals or payments of any kind for this question). Compute the tax on the sale assuming that the investor was a pension plan (a qualified organization) and held the asset directly __________________ Compute the tax on the sale assuming that the investor was a private foundation (a non-qualified organization) and held the asset directly __________________ Compute the tax on the sale assuming that the investor was a pension plan (a qualified organization) and held the asset through a partnership that violated the fractions rule __________________ Compute the tax to the investor if held the asset through a corporation (consider both entity tax and tax on the distributions)…
- Karim Inc., which owes Habib Co. SAR 900,000 in notes payable, is in financial difficulty. To eliminate the debt, Habib agrees to accept from Karim land having a fair value of SAR 610,000 and a recorded cost of SAR 450,000. a) Compute the amount of gain or loss to Karim, Inc. on the transfer (disposition) of the land. b) Compute the amount of gain or loss to Karim, Inc. on the settlement of the debt. c) Prepare the journal entry on Karim's books to record the settlement of this debtA non-U.S. corporation investor held a real estate asset (a parcel of land) that that was purchased for $100,000,000 for 10 years and will sell it for $130,000,000. The investor gain on the sale of the asset is considered to in a business that is effectively connected to a U.S. trade or business (ECI). a. Compute the tax on the sale assuming that the investor held the asset directly (consider both ECI and branch profits tax) b. Compute the tax to the investor if held through US corporation (consider both entity level tax and FDAP tax on the distributions) with no treaty rates and a plan of liquidation in the year of sale USE IRS,USA AND CPA REGULATIONSin the current year, Keyaki Construction Company exchanged a building, which cost $530,000 and had accumulated depreciation of $160,000, for a new building having a fair market value of $650,000 In connection with the exchange, Keyaki paid $280,000 in cash. What is the tax basis of the new building?
- USCO incurred $110,000 in interest expense for the current year. The tax book value of USCO's assets generating foreign-source income is $5,500,000. The tax book value of USCO's assets generating U.S.-source income is $55,000,000. How much of the interest expense is allocated and apportioned to foreign-source income? Do not round intermediate computations but if required, round your final answer to the nearest dollar. %24Lakecraft Company has the following balance sheet on December 31, 2015, when it is acquired for $950,000 in cash by Argo Corporation: All assets have fair values equal to their book values. The combination is structured as a taxfree exchange. Lakecraft Company has a tax loss carryforward of $300,000, which it has not recorded. The balance of the $300,000 tax loss carryover is considered fully realizable. Argo is taxed at a rate of 30%. Record the acquisition of Lakecraft Company by Argo Corporation.Assume that a foreign company using IFRS is owned by a company using U.S. GAAP. Thus, IFRS balances must be converted to U.S. GAAP to prepare consolidated financial statements. Ignore income taxes for given problem. Llungby AB spent 1,000,000 krone in 2017 on the development of a new product. The company determined that 25 percent of this amount was incurred after the criteria in IAS 36 for capitalization as an intangible asset had been met. The newly developed product is brought to market in January 2018 and is expected to generate sales revenue for five years.a. Determine the appropriate accounting for development costs for the years ending December 31, 2017, and December 31, 2018, under (1) IFRS and (2) U.S. GAAP. b. Prepare the entry(ies) that the U.S. parent would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert IFRS balances to U.S. GAAP.