Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 37P
a.
To determine
Compute T’s realized gain or loss.
b.
To determine
Compute T’s recognized gain.
c.
To determine
Compute the new basis of real estate.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Viktor exchanges stock (adjusted basis $19,000, FMV $26,800) and real estate (adjusted basis $19,000, FMV $46,000) held for
investment for other real estate to be held for investment. The real estate acquired in the exchange has a suggested FMV of $70,200.
Required:
a. What are Viktor's realized and recognized gain or loss?
b. What is the basis of the acquired real estate?
a
a
b.
Realized gain
No gain or loss
Realized gain
Realized loss
Recognized gain
Amount
kau.3
answer must be correct
Joshua receives Dee Corp. stock worth $135,000 and $15,000 cash in a Section 351 transaction where he transfers property worth $150,000 (adjusted basis = $120,000). What is Dee Corp.’s basis in the property received?
(LO. 3)
For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer.
If an amount is zero, enter "0".
a. Kiera sells Parchment, Inc. stock (adjusted basis
$29,000) to Phillip, her brother, for its fair market
value of $2,800.
b. Darnell sells land (adjusted basis $89,000) to his
nephew, Boyd, for its fair market value of $41,800.
c. Susan sells a tax-exempt bond (adjusted basis
$43,300) to her wholly owned corporation for its fair
market value of $23,300.
d. Sinbad sells a business truck (adjusted basis
$17,400) that he uses in his sole proprietorship to
his cousin, Agnes, for its fair market value of
$11,000.
e. Martha sells her partnership interest (adjusted basis
$149,600) in Pearl Partnership to her adult daughter,
Kim, for $193,100.
Seller's Recognized
Gain/Loss
Recognized gain
Recognized loss
Buyer's Adjusted Basis
1111
Chapter 15 Solutions
Individual Income Taxes
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - LO.2 Melissa owns a residential lot in Spring...Ch. 15 - LO.2 Ross would like to dispose of some land he...Ch. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 11DQCh. 15 - LO.3 Reba, a calendar year taxpayer, owns an...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 15DQCh. 15 - Prob. 16CECh. 15 - Prob. 17CECh. 15 - Prob. 18CECh. 15 - Prob. 19CECh. 15 - LO.3 On June 5, 2019, Brown, Inc., a calendar year...Ch. 15 - LO.3 Camilos property, with an adjusted basis of...Ch. 15 - Prob. 22CECh. 15 - Prob. 23CECh. 15 - Prob. 24CECh. 15 - Prob. 25CECh. 15 - Prob. 26CECh. 15 - Prob. 27PCh. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31PCh. 15 - Prob. 32PCh. 15 - Prob. 33PCh. 15 - Ed owns investment land with an adjusted basis of...Ch. 15 - Prob. 35PCh. 15 - Prob. 36PCh. 15 - Prob. 37PCh. 15 - Prob. 38PCh. 15 - Prob. 39PCh. 15 - Prob. 40PCh. 15 - LO.3 Howards roadside vegetable stand (adjusted...Ch. 15 - Prob. 42PCh. 15 - Prob. 43PCh. 15 - Prob. 44PCh. 15 - Prob. 45PCh. 15 - Prob. 46PCh. 15 - What are the maximum postponed gain or loss and...Ch. 15 - Prob. 48PCh. 15 - Prob. 49PCh. 15 - Prob. 50PCh. 15 - Prob. 51PCh. 15 - Prob. 52PCh. 15 - Prob. 53PCh. 15 - Prob. 54PCh. 15 - Prob. 55PCh. 15 - Prob. 56PCh. 15 - Devon Bishop, age 45, is single. He lives at 1507...Ch. 15 - Prob. 1RPCh. 15 - Prob. 2RPCh. 15 - Taylor owns a 150-unit motel that was constructed...Ch. 15 - Prob. 6RPCh. 15 - Prob. 1CPACh. 15 - Susie purchased her primary residence on March 15,...Ch. 15 - Chad owned an office building that was destroyed...Ch. 15 - Prob. 4CPACh. 15 - Marsha exchanged land used in her business in...Ch. 15 - Prob. 6CPACh. 15 - Prob. 7CPA
Knowledge Booster
Similar questions
- Tony Smith and Bill Jones buy property for $500,000. Tony and Bill organize a corporation when the property has a fair market value of $700,000. They transfer the property to the corporation for all its authorized capital stock, which has a par value of $700,000. What amount of gain is recognized by Tony? A. $0 B. $250,000 C. $500,000 D. $700,000arrow_forward2 A transfers land to Newco in exchange for 100% of Newco's stock. The land has a basis of $50, FMV of $100 and is subject to a mortgage of $40. a. What are the consequences to each of the parties?arrow_forward5arrow_forward
- Exercise 4-21 (Algorithmic) (LO. 1, 2, 3) Jocelyn contributes land with a basis of $48,500 and fair market value of $72,750 and inventory with a basis of $21,400 and fair market value of $32,100 in exchange for 100% of Zion Corporation stock. The land is subject to a $12,125 mortgage. Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received. If an amount is zero, enter "0". The exchange § 357(a). As a result, Jocelyn has income of $ tax-free under § 351 because the release of a liability and a basis $ in her stock. treated as boot underarrow_forwardfinancearrow_forwardProvide Correct answerarrow_forward
- (1a) How much gain (loss) will Gloria realize on the contribution of the assets to YCI? (1b) How much gain (loss) will Gloria recognize on the contribution of the assets to YCI? (1c) What will be Gloria’s basis in the 16,800 shares of YCI common stock he receives?arrow_forwardneed naswer please provide alll questionarrow_forwardRafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following alternative scenarios? c. Rafael received $23,500 cash, a parcel of land worth $96,500, and marketable securities of $10,40O. Rafael also paid a commission of $9,000 on the transaction. Amount realizedarrow_forward
- I want the correct answer with correct solution helparrow_forwardS1. Account The drop down is "a gain, a loss, no gain or loss)arrow_forwardSammy exchanges land used in his business in a like-kind exchange. The property exchanged is as follows: Property Surrendered Property Received Adj. Basis FMV Adj. Basis FMV Land $44,000 $60,000 $50,000 $43,000 Cash $ 5,000 $ 5,000 Liability on land $12,000 $12,000 The other party assumes the liability. A. What is Sammy’s recognized gain or loss? Explain your answer. b. What is Sammy’s basis for the assets he received?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:9780357109731
Author:Hoffman
Publisher:CENGAGE LEARNING - CONSIGNMENT