Can you solve this financial accounting question with the appropriate financial analysis techniques? Wright Enterprises' warehouse, used in its business, wasdestroyed by a fire. Wright's adjusted basis in the warehousewas $500,000, and its fair market value (FMV) was $600,000.Wright filed an insurance claim and was reimbursed $550,000.In the same year, Wright invested $500,000 of the insuranceproceeds in another business warehouse. Wright will recognizethe gain of:

Step 1: Define Recognized GainA recognized gain is the portion of a realized gain that is subject to…

Answered: Wright Enterprises' warehouse, used in…

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 31P

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Chad owned an office building that was destroyed in a tornado. The area was declared a Federal disaster area. The adjusted basis of the building at the time was 890,000. After the deductible, Chad received an insurance check for 850,000. He used the 850,000 to purchase a new building that same year. How much is Chads recognized loss, and what is his basis in the new building?
Grace acquired an activity four years ago. The loss from the activity is 50,000 in the current year (at-risk basis of 40,000 as of the beginning of the year). Without considering the loss from the activity, she has gross income of 140,000. If the activity is a convenience store and Grace is a material participant, what is the effect of the activity on her taxable income?
Can you please answer the general accounting question?
Rebecca Botson purchased a personal residence for $286,000. It had a fair market value of $300,000 in the current year when it was damaged by a flood that resulted in the entire area being declared a federal disaster area. The fair market value after the flood was $240,000 and insurance proceeds totaled $15,000. What is the net amount of federal casualty loss she can claim if her adjusted gross income is $120,000?
Ron's building, which was used in his business, was destroyed in a fire. Ron's adjusted basis in the building was $210,000, and its FMV was $330,000. Ron filed an insurance claim and was reimbursed $300,000. In that same year, Ron invested $240,000 of the insurance proceeds in another business building. Ron will recognize the gain of: a. $30,000 b. $0 c. $60,000 d. $90,000
Eliza had a commercial warehouse destroyed in a hurricane. The old warehouse was purchased for $310,000, and $94,000 of depreciation deductions had been taken. Eliza received insurance proceeds of $610,000. Although the new warehouse was larger and more modern than the old one, it qualified as replacement property. Eliza acquired the new property 11 months after the hurricane for $660,000. What is the amount of Eliza's realized gain, recognized gain, and the basis in the new property?
Eliza had a commercial warehouse destroyed in a hurricane. The old warehouse was purchased for $310,000, and $94,000 of depreciation deductions had been taken. Eliza received insurance proceeds of $610,000. Although the new warehouse was larger and more modern than the old one, it qualified as replacement property. Eliza acquired the new property 11 months after the hurricane for $660,000. What is the amount of Eliza's realized gain, recognized gain, and the basis in the new property? Answer
Baker Corporation owned a building located in Kansas. Baker used the building for its business operations. Last year, a tornado hit the property and completely destroyed it. This year, Baker received an insurance settlement. Baker had originally purchased the building for $350,000 and had claimed a total of $100,000 of depreciation deductions against the property. What are Baker's realized and recognized gain or (loss) on this transaction and what is its basis in the new building in the following alternative scenarios? (Leave no answer blank. Enter zero if applicable.) d. Baker received $450,000 in insurance proceeds and spent $450,000 rebuilding the building during the next three years. Description Amount Basis of replacement property
Roger, an individual, owns a proprietorship called Green Thing. In the current year, Roger has the following items: Business income $200,000 Business expense $150,000 Loss on a completely destroyed business machine. The machine had an adjusted basis of $25,000 and a fair market value of $20,000 before destroyed. The machine was not insured. Loss on a business truck. The truck had an adjusted basis of $8,000. The repairs to fix the truck cost $10,000. He did not claim the loss from insurance company. Determine Roger's net business income.∙ A. $47,000 B. $30,000 C. $22,000 D. $17,000 E. $15,000
Andrew purchased a residential rental property for $245,000. He made a down payment of $20,000 and secured a nonrecourse loan for $225,000. Andrew defaulted on the loan when the balance of the note was $210,000 and his adjusted basis in the property after depreciation claimed was $223,000. Fair market value of the property at the time of foreclosure was $205,000. What is Andrew's realized amount from the foreclosure? $205,000 $210,000 $223,000 $225,000
in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3, Longworth sold the machine for $35,000. Between the date of purchase and the date of the sale, Longworth depreciated the machine by $22,000. What are the amount and character of the gain or loss Longworth will recognize on the sale? What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $45,000? What are the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $15,000?
Roger, an individual, owns a proprietorship Green Options. For the year 2020, Roger reports the following items: Business income - $ 200,000 Business expense - $ 150,000 Loss on a completely destroyed business machine. The machine had an adjusted basis of $ 25,000 and a fair market value of $ 20,000. Loss on a business truck. The truck had an adjusted basis of $ 8,000. The repairs to fix the truck cost $ 10,000. Determine Roger's adjusted gross income for 2020

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