____28. Manuel acquired raw land as an investment in 2010. The land cost was $55,000. In...
Homework Answers
Cost price of land = $55,000
Sale price of land = $110,000
Gain on sale of land = Sale price of land - Cost price of land
= 110,000-55,000
= $55,000
Cash received in 2018 = $10,000
Hence, gain to be recognized in 2018 = Gain on sale x Cash received/Total sale price
= 55,000 x 10,000/110,000
= $5,000
Correct option is b.
Kindly comment if you need further assistance.
Thanks‼!
Add Answer to:
____28. Manuel acquired raw land as an investment in 2010. The
land cost was $55,000. In...
Pedro sells investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis...
Pedro sells investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis $25,000 Selling price 90,000 Selling expenses 1,500 Down payment 12,000 Four installment payments 15,000 Mortgage assumed by the buyer 18,000 Each installment payment is due on September 1 of 2019, 2020, 2021, and 2022 (ignore interest). Determine the tax consequences in 2018, 2019, 2020, 2021, and 2022.
Pedro sells Investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis...
Pedro sells Investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis Selling price Selling expenses Down payment Four installment payments Mortgage assumed by the buyer $26,000 93,600 1,250 10,500 15,600 20,700 Each Installment payment is due on September 1 of 2019, 2020, 2021, and 2022 (Ignore Interest). Determine the tax consequences in 2018, 2019, 2020, 2021, and 2022. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar value.) Year Gain Recognized...
Hal, a cash basis taxpayer, sold investment land in 2018 for $200,000. He received $40,000 in...
Hal, a cash basis taxpayer, sold investment land in 2018 for $200,000. He received $40,000 in the year of sale and $160,000 in 2019. The cost of the land was $80,000. Under the installment method, how much gain must the taxpayer report in 2018? a. Hal must recognize $24,000 gain in the year of the sale B. Hal must recognize $36,000 gain in the year of the sale C. Hal must recognize $60,000 gain in the year of the sale...
On January 2, year 1, Randy sold a parcel of land held as an investment. Randy’s basis in the land was $8,500. The buyer...
On January 2, year 1, Randy sold a parcel of land held as an investment. Randy’s basis in the land was $8,500. The buyer made a $6,000 down payment on the date of sale and $7,000 payments on January 2 in both year 2 and year 3. In addition, the buyer paid 8 percent interest on the unpaid balance. How much income should Randy have recognized in years 1, 2, and 3, assuming that he used the installment method? What...
On Dec. 31, 2020, Mary sold a piece of investment land for $1M (basis = $100,000)....
On Dec. 31, 2020, Mary sold a piece of investment land for $1M (basis = $100,000). Mary received $100,000 cash on Dec. 31, 2020 and a $900,000 note. The note calls for three annual installment payments of 300K beginning in 2021 and provides for annual interest payments (at market rate, beginning in 2021). Mary will use the installment sale method to report her taxable gain. In 2021, Mary receives a $300,000 installment payment on the note plus $36,000 interest on...
George sold land to an unrelated party in 2018. His basis in the land was $44,000...
George sold land to an unrelated party in 2018. His basis in the land was $44,000 in the selling price was $132,000-$33,000 payable at closing and $33,000 (+ 10% interest) due January 1, 2019, 2020 and 2021. what would be the tax consequence of the following? treat each part independently, assume that George did not elect out of the installment method and the installment obligations have values equal to their face amounts. Ignore interest in your calculations. Record the gross...
PLEASE HELP In year 1, Aldo sold investment land with a $61,000 tax basis for $95,000....
PLEASE HELP
In year 1, Aldo sold investment land with a $61,000 tax basis for $95,000. Payment consisted of $15,000 cash down and the purchaser's note for $80,000. The note is being paid in 10 annual installments of $8,000, beginning in year 2. a. Compute Aldo's recognized gain under the installment sale method in years 1 and 2. b. In year 4, Aldo pledged the note as partial collateral for a $75,000 bank loan. The unpaid principal at date of...
Prepare a Statement of Cash Flows using the direct method. Use the following information: The following...
Prepare a Statement of Cash Flows using the direct method. Use
the following information:
The following information is available for 2017.
Equipment (cost $10,000 and accumulated depreciation $4,000)
was sold for $7,000. All other changes in Property, Plant and
Equipment accounts relate to purchases and depreciation expense,
respectively.
Intangible Assets costing $10,000 were purchased during
2017.
There were $25,000 in payments on the Bonds Payable during
2017
12/31/2016 Closing Trial Balance 55,000 70,000 (4,000) 80,000 9,000 - Cash Accounts Receivable...
Comparing Tractor Financing Options After land, machinery is often the largest single investment on a farm. Many dollars can be saved by carefully exploring all options for acquiring machinery. The ob...
Comparing Tractor Financing Options After land, machinery is often the largest single investment on a farm. Many dollars can be saved by carefully exploring all options for acquiring machinery. The objective of this exercise is to compare three different plans for financing the purchase of a new tractor. Financing Options A new tractor can be acquired by: Outright purchase for cash, at a cost of $64,500. Purchase by an installment contract with a down payment of 20% of the purchase...
COMPARING TRACTOR FINANCING OPTIONS After land, machinery is often the largest single investment on a farm....
COMPARING TRACTOR FINANCING OPTIONS After land, machinery is often the largest single investment on a farm. Many dollars can be saved by carefully exploring all options for acquiring its use. The objective of this exercise is to compare three different plans for financing the purchase of a new tractor Financing Options A new tractor can be acquired by: 1. Outright purchase for cash, at a cost of $64,500. 2. Purchase by an installment contract with a down payment of 20...
Pedro sells Investment land on September 1, 2018. Information pertaining to the sale follows: Adjusted basis Selling price Selling expenses Down payment Four installment payments Mortgage assumed by the buyer $26,000 93,600 1,250 10,500 15,600 20,700 Each Installment payment is due on September 1 of 2019, 2020, 2021, and 2022 (Ignore Interest). Determine the tax consequences in 2018, 2019, 2020, 2021, and 2022. (Do not round Intermediate calculations. Round your final answers to nearest whole dollar value.) Year Gain Recognized...
PLEASE HELP
In year 1, Aldo sold investment land with a $61,000 tax basis for $95,000. Payment consisted of $15,000 cash down and the purchaser's note for $80,000. The note is being paid in 10 annual installments of $8,000, beginning in year 2. a. Compute Aldo's recognized gain under the installment sale method in years 1 and 2. b. In year 4, Aldo pledged the note as partial collateral for a $75,000 bank loan. The unpaid principal at date of...
Prepare a Statement of Cash Flows using the direct method. Use
the following information:
The following information is available for 2017.
Equipment (cost $10,000 and accumulated depreciation $4,000)
was sold for $7,000. All other changes in Property, Plant and
Equipment accounts relate to purchases and depreciation expense,
respectively.
Intangible Assets costing $10,000 were purchased during
2017.
There were $25,000 in payments on the Bonds Payable during
2017
12/31/2016 Closing Trial Balance 55,000 70,000 (4,000) 80,000 9,000 - Cash Accounts Receivable...
COMPARING TRACTOR FINANCING OPTIONS After land, machinery is often the largest single investment on a farm. Many dollars can be saved by carefully exploring all options for acquiring its use. The objective of this exercise is to compare three different plans for financing the purchase of a new tractor Financing Options A new tractor can be acquired by: 1. Outright purchase for cash, at a cost of $64,500. 2. Purchase by an installment contract with a down payment of 20...
Most questions answered within 3 hours.
-
While rotating the tires on your car you notice a rock [mass =
0.1 Kg] stuck...
asked 1 hour ago -
Using MARS simulator, write MIPS programs according to
the following scenarios: Receive a positive integer number...
asked 3 hours ago -
An object in front of a concave mirror has a real image that is
11.5 cm...
asked 3 hours ago -
Consider the reaction, C3 H8 + O2 --> CO2 + H2O. How many
moles of O2...
asked 5 hours ago -
You and your opponent both roll a fair die. If you both roll the
same number,...
asked 5 hours ago -
In a study of the accuracy of fast food drive-through orders,
Restaurant A had 257 accurate...
asked 5 hours ago -
Identify and describe in detail the four categories of
institutions that could be included in a...
asked 5 hours ago -
In python
class Customer:
def __init__(self, customer_id, last_name, first_name, phone_number, address):
self._customer_id = int(customer_id)
self._last_name =...
asked 6 hours ago -
What is an example of a limitation in implementing a new
ERP system and how it...
asked 5 hours ago -
In a section of 9.7cm of an artery with a radius of 2.6mm there
is a...
asked 6 hours ago -
the two carboxylic acid groups of aspartic acid have different
acidities with pKa values of 2.1...
asked 6 hours ago -
Would CuCO3 aqueous salt combined with calcium chloride
form a solid precipitate? If so, what would...
asked 6 hours ago