South-western Federal Taxation 2018: Individual Income Taxes
41st Edition
ISBN: 9781337385886
Author: William H. Hoffman, James C. Young, William A. Raabe, David M. Maloney, Annette Nellen
Publisher: Cengage Learning
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Chapter 15, Problem 6CPA
To determine
Identify Person M’s basis in the land received.
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Fred and Sarajane exchanged land in a qualifying like-kind exchange. Fred gives up land with an adjusted basis of $11,000 (fair market value of $16,000) in exchange for Sarajane's land with a fair market value of $12,000 plus $4,000 cash. How much gain should Fred recognize on the exchange?
a.$4,000
b.$5,000
c.$0
d.$1,000
e.None of these choices are correct
kk.
Subject :- Accounting
Michelle exchanges land in Illinois with a FMV of $100,000 and an adjusted basis of $60,000 for land in Indiana with a FMV of $80,000 and $20,000 cash. Both parcels of land will be used in Michelle's trade or business. What is Michelle's recognized gain or loss?
19.
Chapter 15 Solutions
South-western Federal Taxation 2018: 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 - Prob. 12DQCh. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - Prob. 15DQCh. 15 - Prob. 16CECh. 15 - Prob. 17CECh. 15 - Prob. 18CECh. 15 - Prob. 19CECh. 15 - Prob. 20CECh. 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 - Prob. 57CPCh. 15 - Prob. 1RPCh. 15 - Prob. 2RPCh. 15 - Taylor owns a 150-unit motel that was constructed...Ch. 15 - Prob. 5RPCh. 15 - Prob. 1CPACh. 15 - Chad owned an office building that was destroyed...Ch. 15 - Prob. 3CPACh. 15 - Marsha exchanged land used in her business in...Ch. 15 - Prob. 5CPACh. 15 - Prob. 6CPA
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Similar questions
- 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.arrow_forwardMisha Corp. exchanged Land A for Land B. Misha originally purchased Land A for $150,000 and Land A’s fair value was $165,000 at the time of the exchange. Misha gave Land A and $12,000 in cash in exchange for Land B, which had a fair market value of $177,000 at the time of the exchange. Assume the exchange qualifies as a like-kind exchange. What is Misha's recognized gain/loss on the exchange? What is Misha's basis in Land B?arrow_forwardNana 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. P4,500,000arrow_forward
- 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:arrow_forwardThe following information applies to question 17-19: Snow White gave both Fairytaleland (with a basis of $8,000 and market value of $10,000) and $3,000 cash to Cinderella. Cinderella in return gave Snow White an acre of Neverland (basis of $15,000 and market value of $13,000). Both land parcels are held for investment. What amount, if any, is Cinderella's recognized gain or loss? 17. 18. 19. What amount is Cinderella's basis in Fairytaleland? What amount is Snow White's basis in Neverland?arrow_forwardAngel owned a property costing Php. 2,000,000.00. She exchanged her property with the lot of Princess with an FMV of Php. 2,500,000.00. The parties have agreed that Angel will pay an additional cash of Php. 300,000.00. COMPUTE THE GAIN ON EXCHANGE THAT ANGEL SHOULD RECOGNIZEarrow_forward
- Abbott exchanges land in a transaction that lacks commercial substance. The net book value of the land exchanged is $50,000. In exchange Abbott receives land with a fair value of $60,000 and $20,000 in cash. What is the gain that Abbott should recognize?arrow_forward1. Kelly exchanges land (adjusted basis of $75,000; fair market value of $62,000) used in her business and common stock held for investment (adjusted basis of $8,000; fair market value of $12,000) for a single parcel of land (fair market value of $74,000) to be used in her business in a like-kind exchange. Determine her basis for the land she exchanges.arrow_forwardMisha Corp. exchanged Land A for Land B. Misha originally purchased Land A for $150,000 and Land A's fair value was $165,000 at the time of the exchange. Misha gave Land A and $12,000 in cash in exchange for Land B, which had a fair market value of $177,000 at the time of the exchange. Assume the exchange qualifies as a like-kind exchange. 1. What is Misha's recognized gain/loss on the exchange? A. $12000 gain B. $0 gain C. $27000 D. $15000 2. What is Misha's basis in Land B? A. $150000 B. $177000 C. $162000arrow_forward
- Logan and Johnathan exchange land, and the exchange qualifies as like kind under § 1031. Because Logan's land (adjusted basis of $95,500) is worth $114,600 and Johnathan's land has a fair market value of $90,725, Johnathan also gives Logan cash of $23,875. a. Logan's recognized gain is $____________ . b. Assume that Johnathan's land is worth $103,140 and he gives Logan $11,460 cash. Logan's recognized gain is $___________arrow_forwardMarsha 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. 32,700arrow_forwardNeed answerarrow_forward
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