none Wreck Lurk bought a plot of land with a cashpayment of $40,000 and a purchase moneymortgage of $50,000. In addition, Perk paid $200 fora title insurance policy. Perk's basis in this land is_$?

Explanation of Cost Basis: Cost basis represents the total cost of acquiring an asset, including all…

Answered: Wreck Lurk bought a plot of land with a…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter13: Property Transact Ions: Determination Of Gain Or Loss, Basis Considerations, And Nontaxable Exchanges

Section: Chapter Questions

Problem 14BCRQ

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Nana bought land with a cash payment of P2,000,000.00 and a purchase money mortgage of P 2,500,000.00. In addition, Nana paid P10,000.00 for a title insurance policy. Nana basis in this land is: a. P4,510,000 b. P2,010,000 c. P2,000,000 d. P4,500,000
Charlie exchanged land with an adjusted basis of $50,000 and received another parcel of land worth $35,000 plus $10,000 of cash. Charlie held the original land for investment purposes and will do the same with the new parcel. Due to the exchange, Charlie will recognize:
During the current year, Ethel exchanges a business land for different business land in a like-kind exchange. Ethel's adjusted basis in the land given up is $7,000, and she receives a land worth $13,000 plus $3,000 cash. a. Calculate the amount of gain realized by Ethel on the exchange. b. Calculate the amount of the gain that must be recognized by Ethel on the transaction.
please help answer a and b
Marsha exchanged land used in her business in Florida with an FMV of 72,700 and an adjusted basis of 40,000 for land used in her business in Iowa with an FMV of 57,700. Marsha also paid 5,000 cash in the transaction and received an automobile worth 20,000. What is Marshas recognized gain on the transaction? a. 0 b. 15,000 c. 20,000 d. 32,700
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.
Oisha gave a parcel of realty to Julie valued at $197,500 (Oisha purchased the property five years ago for $83,000). a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $204,800. What is the amount of her gain or loss, if any, on the sale? Answer is complete but not entirely correct. $ 182.500 $ 121,800 a. Amount of taxable gift b. Amount of gain
Angelina gave a parcel of realty to Julie valued at $167,500 (Angelina purchased the property five years ago for $71,000). Required: a. Compute the amount of the taxable gift on the transfer, if any. b. Suppose several years later Julie sold the property for $174,000. What is the amount of her gain or loss, if any, on the sale? a. Amount of taxable gift b. Amount of gain
Lily exchanges land used in her business for a different parcel of land to be used in her business. Her adjusted basis for the land is $325,000 and the fair market value is $310,000. The fair market value of the new parcel of land is $300,000. In addition, Lily receives cash of $10,000. Calculate Lily’s realized and recognized gain or loss and her adjusted basis for the assets received.
Tom and Elizabeth purchase land for $1,300,000—Tom furnishes $390,000 and Elizabeth $910,000 of the purchase price. Title to the property is held as joint tenants with right of survivorship. Elizabeth dies first 10 years later when the land is worth $2,600,000. a. How much of the property is included in Elizabeth's gross estate? $ 1,820,000 b. What is Tom's income tax basis in the property? $___
Frosty exchanges land used in her business for a different parcel of land to be used in her business. Her adjusted basis for the land is $325,000 and the fair market value is $310,000. The fair market value of the new parcel of land is $300,000. In addition, Frosty receives cash of $10,000. Calculate Frosty’s adjusted basis for the new parcel of land.
Clara received from her Aunt Sona property with a FMV at the date of the gift of $30,000. Aunt Sona purchased the property five years ago for $35,000 If Clara sold the property for $28,000, what is her gain or loss on the sale?

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Wreck Lurk bought a plot of land with a cash payment of $40,000 and a purchase money mortgage of $50,000. In addition, Perk paid $200 for a title insurance policy. Perk's basis in this land is _$?