Individual Income Taxes
43rd Edition
ISBN: 9780357109731
Author: Hoffman
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 16, Problem 12CE
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Dexter owns a large tract of land and subdivides it for sale. Assume thatDexter meets all of the requirements of § 1237 and during the tax year sellsthe first eight lots to eight different buyers for $22,000 each. Dexter’s basis in eachlot sold is $15,000, and he incurs total selling expenses of $900 on each sale. Whatis the amount of Dexter’s capital gain and ordinary income? Formulate your answerby constructing a spreadsheet using a format similar to that found in Example 10.
Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $60,200 each. Dexter's basis in each lot sold is $42,140, and he incurs total selling expenses of $2,408 on each sale.
What is the amount of Dexter's capital gain and ordinary income?
Dexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the
tax year sells the first eight lots to eight different buyers for $159,400 each. Dexter's basis in each lot sold is $111,580, and he incurs
total selling expenses of $6,376 on each sale.
What is the amount of Dexter's capital gain and ordinary income?
If required, round your answers to the nearest dollar.
Dexter has a realized and recognized gain of $
as a capital gain.
of which $
is classified as ordinary income and
Chapter 16 Solutions
Individual Income Taxes
Ch. 16 - Prob. 1DQCh. 16 - An individual taxpayer sells some used assets at a...Ch. 16 - Alison owns a painting that she received as a gift...Ch. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - After netting all of her short-term and long-term...Ch. 16 - Prob. 10DQ
Ch. 16 - Near the end of 2019, Byron realizes that he has a...Ch. 16 - Prob. 12CECh. 16 - Prob. 13CECh. 16 - Prob. 14CECh. 16 - On May 9, 2019, Glenna purchases 500 shares of...Ch. 16 - Prob. 16CECh. 16 - Prob. 17CECh. 16 - Elliott has the following capital gain and loss...Ch. 16 - Prob. 19PCh. 16 - Prob. 20PCh. 16 - Prob. 21PCh. 16 - George is the owner of numerous classic...Ch. 16 - Prob. 23PCh. 16 - Prob. 24PCh. 16 - Prob. 25PCh. 16 - Melaney has had a bad year with her investments....Ch. 16 - Prob. 27PCh. 16 - Prob. 28PCh. 16 - Prob. 29PCh. 16 - Prob. 30PCh. 16 - Prob. 31PCh. 16 - Prob. 32PCh. 16 - Prob. 33PCh. 16 - Prob. 34PCh. 16 - Prob. 35PCh. 16 - Prob. 36PCh. 16 - Prob. 37PCh. 16 - Dennis sells short 100 shares of ARC stock at 20...Ch. 16 - Elaine Case (single with no dependents) has the...Ch. 16 - Prob. 40PCh. 16 - Prob. 41PCh. 16 - Prob. 42PCh. 16 - Paul has the following long-term capital gains and...Ch. 16 - Helena has the following long-term capital gains...Ch. 16 - For 2019, Ashley has gross income of 38,350 and a...Ch. 16 - Prob. 46PCh. 16 - For 2019, Wilma has properly determined taxable...Ch. 16 - Prob. 48PCh. 16 - Gray, Inc., a C corporation, has taxable income...Ch. 16 - Harriet, who is single, is the owner of a sole...Ch. 16 - Ashley Panda lives at 1310 Meadow Lane, Wayne, OH...Ch. 16 - Paul Barrone is a graduate student at State...Ch. 16 - Prob. 1RPCh. 16 - Prob. 2RPCh. 16 - Prob. 3RPCh. 16 - Prob. 4RPCh. 16 - Prob. 1CPACh. 16 - Conner purchased 300 shares of Zinco stock for...Ch. 16 - Brad and Angie are married and file a joint...
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- Determine whether the taxpayer has income that is subject to taxation in each of the following situations: a. Capital Motor Company is going out of business. As a result, June is able to purchase a car for 12,000; its original sticker price was 25,000. b. Chuck is the sole owner of Ransom, Inc., a corporation. He purchases a machine from Ransom for 10,000. Ransom had paid 50,000 for the machine, which was worth 30,000 at the time of the sale to Chuck. c. Gerry is an elementary school teacher. She receives the Teacher of the Month Award for February. As part of the award, she gets to drive a new car supplied by a local dealer for a month. The rental value of the car is 400 per month. d. Payne has worked for Stewart Company for the last 25 years. On the 25th anniversary of his employment with Stewart, he receives a set of golf clubs worth 1,200 as a reward for his years of loyal service to the company. e. Anna enters a sweepstakes contest that was advertised on the back of a cereal box, and wins 30,000. The prize will be paid out in 30 annual installments of 1,000. She receives her first check this year. f. Terry buys an antique vase at an estate auction for 780. Upon returning home, she accidentally drops the vase and finds that a 100 bill had been taped inside it.arrow_forwardDexter owns a large tract of land and subdivides it for sale. Assume that Dexter meets all of the requirements of § 1237 and during the tax year sells the first eight lots to eight different buyers for $146,600 each. Dexter's basis in each lot sold is $102,620, and he incurs total selling expenses of $5,864 on each sale. What is the amount of Dexter's capital gain and ordinary income? If required, round your answers to the nearest dollar. Dexter has a realized and recognized gain of $fill in the blank 1, of which $fill in the blank 2 is classified as ordinary income and$fill in the blank 3 as a capital gain. Feedback Area Feedbackarrow_forwardA) Suppose that Charles holds the land for appreciation. deductible taxes from AGI ( ) B) Suppose that Charles holds the land for rent. Suppose that Charles holds the land for rent.arrow_forward
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