Sheila purchased Turner AAA bonds in May, 2016 for $47,600
Sheila purchased Turner AAA bonds in May, 2016 for $47,600. In September 2018, she sold the bonds for $51,500, paying commission of $515. What is her:
Amount realized
Adjusted basis
Realized gain/loss
Recognized gain/loss
Type of gain/loss
Homework Answers
Answer:
Amount realized = Sale value - commission paid = 51500 - 515 = $50,985
Adjusted basis = Purchase cost = $47,600
Realized Gain = Amount realized - Adjusted basis = 50985 - 47600 = $3,385
Recognized Gain = $3385
Since she held the bond for more than one year before selling in Sep 2018:
Type of gain is Long Term Capital Gain.
Hence
Amount realized = $50,985
Adjusted basis = $47,600
Realized Gain = $3,385
Recognized Gain = $3,385
Type of Gain = Long Term Capital Gain.
Jessica's office building is destroyed by fire on November 15, 2018. The adjusted basis of the...
Jessica's office building is destroyed by fire on November 15, 2018. The adjusted basis of the building is $390,000. She recelves Insurance proceeds of $557,500 on December 12, 2018. a. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building In December 2018 for $557,500. b. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2018 for $452,500. c. What is...
Crystal owns 183 shares of Carson Inc. stock that has an adjusted basis of $136,335. On...
Crystal owns 183 shares of Carson Inc. stock that has an adjusted basis of $136,335. On December 18, 2018, she sells the 183 shares for FMV ($127,185). On January 7, 2019, she purchases 244 shares of Carson stock for $191,540. a. What are Crystal's realized and recognized gain or loss on the sale of the 183 shares sold on December 18, 2018? b. What is Crystal's adjusted basis for the 244 shares purchased on January 7, 2019? c. How would...
3. Venom owns land with an adjusted basis of $280,000 and a fair market value of...
3. Venom owns land with an adjusted basis of $280,000 and a fair market value of $150,000. He sells the land for $115,000 to Phenom, Inc., a corporation in which he owns 60% of the stock. Determine the amount of realized and recognized gain or loss to Venom and the adjusted basis for Phenom. (5 points) 4. In 2018, Riot purchased 200 shares of Misanthropy Corporation stock for $24,000 on January 1, 2015. He sells 50 shares of the 200...
in 2016, Shari purchased a $20,000 piece of equipment for exclusive use in her business. she claimed a $6000 179 deducti...
in 2016, Shari purchased a $20,000 piece of equipment for exclusive use in her business. she claimed a $6000 179 deduction and $6654 MACRS depreciation. she sold the equipment in November 2018 for $7000. what is the amount and type of gain or loss and where on form 4797 does Shari report the sale?
Metro Corp. traded Land A for Land B. Metro originally purchased Land A for $50,000 and Land A's adjusted basi...
Metro Corp. traded Land A for Land B. Metro originally purchased Land A for $50,000 and Land A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Land B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.) a. The fair market...
I need help with this. On February 1, 2018, a 39-year-old widow buys a new residence...
I need help with this.
On February 1, 2018, a 39-year-old widow buys a new residence for $180,000. Three months later, she sells her old residence for $352,000 (adjusted basis of $138,000). Selling expenses totaled $24,000. She lived in the old house for 15 years. a. What are the widow's realized and recognized gain or loss? (If there is no gain or loss is recognized, select "No gain/loss".) b. What is her basis in the new residence? b. Basis of...
Deirdre sold 112 shares of stock to her brother, James, for $3,584. Deirdre purchased the stock...
Deirdre sold 112 shares of stock to her brother, James, for $3,584. Deirdre purchased the stock several years ago for $4,592. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) a. What gain or loss does Deirdre recognize on the sale? b. What amount of gain or loss does James recognize if he sells the stock for $4,816? c. What amount of gain or loss does James recognize if he sells the...
Chapter 19 Corporate Organization Exercise Kathy and Carl formed a corporation by each contributi...
Please show your work
Chapter 19 Corporate Organization Exercise Kathy and Carl formed a corporation by each contributing an asset with a FMV of $50,000 for half of the stock in the corporation. Prior to the transfer, Kathy had an adjusted basis of $40,000 in her asset and Carl had an adjusted basis of $60,000 in his asset. a. Does this exchange qualify for 351 treatment? Why? b. What is Kathy's realized gain on the transaction? c. What is Kathy's...
Venom owns land with an adjusted basis of S280,000 and a fair market value of S150,000....
Venom owns land with an adjusted basis of S280,000 and a fair market value of S150,000. He sells the land for $115,000 to Phenom, Inc., a corporation in which he owns 60% of the stock. Determine the amount of realized and recognized gain or loss to Venom and the adjusted basis for Phenom. (5 points) 3. 4. In 2018, Riot purchased 200 shares of Misanthropy Corporation stock for $24,000 on January 1, 2015. He sells 50 shares of the 200...
Virginla Is an accountant for a global CPA firm. She Is belng temporarily transferred from the...
Virginla Is an accountant for a global CPA firm. She Is belng temporarily transferred from the Ralelgh, North Carolina, office to Tokyo. She will leave Raleigh on October 7, 2018, and wiIll be out of the country for four years. She sells her personal residence on September 30, 2018, for $228,750 (her adjusted basls Is $195,000). Upon her return to the United States In 2022, she purchases a new residence in Los Angeles for $213,500, where she will continue workling...
Jessica's office building is destroyed by fire on November 15, 2018. The adjusted basis of the building is $390,000. She recelves Insurance proceeds of $557,500 on December 12, 2018. a. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building In December 2018 for $557,500. b. Calculate her realized and recognized gain or loss for the replacement property if she acquires an office building in December 2018 for $452,500. c. What is...
Crystal owns 183 shares of Carson Inc. stock that has an adjusted basis of $136,335. On December 18, 2018, she sells the 183 shares for FMV ($127,185). On January 7, 2019, she purchases 244 shares of Carson stock for $191,540. a. What are Crystal's realized and recognized gain or loss on the sale of the 183 shares sold on December 18, 2018? b. What is Crystal's adjusted basis for the 244 shares purchased on January 7, 2019? c. How would...
3. Venom owns land with an adjusted basis of $280,000 and a fair market value of $150,000. He sells the land for $115,000 to Phenom, Inc., a corporation in which he owns 60% of the stock. Determine the amount of realized and recognized gain or loss to Venom and the adjusted basis for Phenom. (5 points) 4. In 2018, Riot purchased 200 shares of Misanthropy Corporation stock for $24,000 on January 1, 2015. He sells 50 shares of the 200...
Metro Corp. traded Land A for Land B. Metro originally purchased Land A for $50,000 and Land A's adjusted basis was $25,000 at the time of the exchange. What is Metro's realized gain or loss, recognized gain or loss, and adjusted basis in Land B in each of the following alternative scenarios? (Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answer blank. Enter zero is applicable.) a. The fair market...
I need help with this.
On February 1, 2018, a 39-year-old widow buys a new residence for $180,000. Three months later, she sells her old residence for $352,000 (adjusted basis of $138,000). Selling expenses totaled $24,000. She lived in the old house for 15 years. a. What are the widow's realized and recognized gain or loss? (If there is no gain or loss is recognized, select "No gain/loss".) b. What is her basis in the new residence? b. Basis of...
Please show your work
Chapter 19 Corporate Organization Exercise Kathy and Carl formed a corporation by each contributing an asset with a FMV of $50,000 for half of the stock in the corporation. Prior to the transfer, Kathy had an adjusted basis of $40,000 in her asset and Carl had an adjusted basis of $60,000 in his asset. a. Does this exchange qualify for 351 treatment? Why? b. What is Kathy's realized gain on the transaction? c. What is Kathy's...
Venom owns land with an adjusted basis of S280,000 and a fair market value of S150,000. He sells the land for $115,000 to Phenom, Inc., a corporation in which he owns 60% of the stock. Determine the amount of realized and recognized gain or loss to Venom and the adjusted basis for Phenom. (5 points) 3. 4. In 2018, Riot purchased 200 shares of Misanthropy Corporation stock for $24,000 on January 1, 2015. He sells 50 shares of the 200...
Virginla Is an accountant for a global CPA firm. She Is belng temporarily transferred from the Ralelgh, North Carolina, office to Tokyo. She will leave Raleigh on October 7, 2018, and wiIll be out of the country for four years. She sells her personal residence on September 30, 2018, for $228,750 (her adjusted basls Is $195,000). Upon her return to the United States In 2022, she purchases a new residence in Los Angeles for $213,500, where she will continue workling...
Most questions answered within 3 hours.
-
Atmospheric Mass
Venus and Earth have about the same mass and radius, but the
atmospheric pressure...
asked 46 minutes ago -
5. Discuss the use of fault tree analysis (FTA) for risk
assessment (maximum one paragraph).
asked 1 hour ago -
Given that a sample of aluminium oxide has a Young's modulus of
393 GPa and a...
asked 3 hours ago -
At a certain temperature, the equilibrium constant, Kc, for this
reaction is 53.3.
H2(g)+I2(g)−⇀↽−2HI(g)Kc=53.3
At this...
asked 4 hours ago -
Question1 ) The STL provides similiar classes called stack and
queue, both of which gave functions...
asked 5 hours ago -
For Questions 1-4, assume you have 5 bits available:
1. For (positive) integers: What is the...
asked 5 hours ago -
convert grams into vloume with the density of water being at
.997514 g/cm^3 at 23.1 Celsuis...
asked 7 hours ago -
Foreman company obtained a $20,000, 6% loan on May 1, 2018.
Principal and interest will be...
asked 7 hours ago -
5. Problem 11.05 (Discounted Payback)
eBook
Project L costs $60,000, its expected cash inflows are $14,000
per...
asked 8 hours ago -
1. Which of the following is true about politics and health
organizations?
A. Health organizations are...
asked 8 hours ago -
A space vehicle is coasting at a constant velocity of 18.1 m/s
in the +y direction...
asked 9 hours ago -
5) Use the following balanced equation to answer questions
(a)-(i).
3 Cu(s) + 8 HNO3(aq) →...
asked 9 hours ago