Homework Answers
| Loss recognized | $3185 |
| Description | amount | explanation |
| 1. Amount realized | 26000 | |
| 2. Original basis for loss | 32500 | Fair market value on the date of conversion |
| 3. Depreciation | 3315 | Given |
| 4. Adjusted basis at the date of sale | 29185 | 2 - 3 |
| Gain (loss) recognized | (3185) | 1 - 4 |
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a building from personal to business use in May 2015 when the fair market value was...
The basis of property converted from personal-use to business-use is the a. Fair market value to...
The basis of property converted from personal-use to business-use is the a. Fair market value to calculate depreciation and the adjusted basis to calculate gain or loss b. Greater of the adjusted basis or fair market value on the date of conversion c. Lesser of the adjusted basis or fair market value on the date of conversion d. Purchase price
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...
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...
Barbara converts her personal use computer to her cleaning business. she purchased the computer two years...
Barbara converts her personal use computer to her cleaning business. she purchased the computer two years ago for $1,200. When she converts the property to business use, the fair market value is $1,000. while using the computer in her business for 18 months, she properly desucted depreciation (cost recovery) expense of $360, and she sells the computer for $600. what is her recognized gain or loss? And what is Barbara's depreciable basis in the computer when she converts the property...
1. Jane owns a building for investment with an adjusted basis of $340,000 and a fair...
1. Jane owns a building for investment with an adjusted basis of $340,000 and a fair market value of $750,000. She exchanges the building for a building owned by Sue that Jane will use in her business. Sue’s building has a fair market value of $950,000 and is subject to a $200,000 liability. Jane assumes Sue’s liability and uses the building in her business. How much, if any, is Jane’s realized gain, recognized gain, and basis in the building received?...
Problem 7-38 (LO. 3, 4) Heather owns a two-story building. The building is used 40% for...
Problem 7-38 (LO. 3, 4)
Heather owns a two-story building. The building is used 40% for
business use and 60% for personal use. During 2020, a fire caused
major damage to the building and its contents. Heather purchased
the building for $800,000 and has taken depreciation of $100,000 on
the business portion. At the time of the fire, the building had a
fair market value of $900,000. Immediately after the fire, the fair
market value was $200,000. The insurance recovery...
Lyle Lawrence transfers an apartment building with an adjusted basis of $300,000 and a fair market value of $480,000 for Carl Cushions apartment building (adjusted basis $280,000) with a fair market v...
Lyle Lawrence transfers an apartment building with an adjusted basis of $300,000 and a fair market value of $480,000 for Carl Cushions apartment building (adjusted basis $280,000) with a fair market value of $400,000. Lyle's mortgage of $120,000 is assumed by Carl, whose mortgage of $40,000 is assumed by Lyle. What is the recognized gain or loss for Lyle? (if a loss, put number in parentheses)
Steve transfers an office building with an adjusted basis of $200,000 and a fair market value...
Steve transfers an office building with an adjusted basis of $200,000 and a fair market value of $300,000 for Arlene's office building (adjusted basis $190,000) with a fair market value of $250,000. Steve's mortgage of $120,000 is assumed by Arlene whose mortgage of $70,000 is assumed by Steve. What is the realized and recognized gain or loss for Steve and Arlene and what are their bases in their acquired buildings?
n's office building with an adjusted basis of $750,000and a fair market value of $900,000 is...
n's office building with an adjusted basis of $750,000and a fair market value of $900,000 is condemned on 8. Sam is a calendar year taxpayer. He receives a condemnation award of $875,000 on March 1, Whe, s a new office building at a cost of $845,000 which is completed and paid for on December 31, 2021. of the condemnation award and basis for the new office building assuming What is Sam's recognized gain on receipt his objective is to minimize...
5. Joseph exchanged farmhouse that he used in his farming business for a building used by...
5. Joseph exchanged farmhouse that he used in his farming business for a building used by Sandy in her motorcycle manufacturing business. The farmhouse had a FMV of $345,000 and cost $285,000. The allowable depreciation was $45,000, but because of an error, Joseph only took $25,000 of depreciation. The building had a FMV of $275,000 and an adjusted basis of $315,000. Because the building was expected to increase in value rapidly, Sandy only gave Joseph $45,000 cash. What is Joseph'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...
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...
Problem 7-38 (LO. 3, 4)
Heather owns a two-story building. The building is used 40% for
business use and 60% for personal use. During 2020, a fire caused
major damage to the building and its contents. Heather purchased
the building for $800,000 and has taken depreciation of $100,000 on
the business portion. At the time of the fire, the building had a
fair market value of $900,000. Immediately after the fire, the fair
market value was $200,000. The insurance recovery...
n's office building with an adjusted basis of $750,000and a fair market value of $900,000 is condemned on 8. Sam is a calendar year taxpayer. He receives a condemnation award of $875,000 on March 1, Whe, s a new office building at a cost of $845,000 which is completed and paid for on December 31, 2021. of the condemnation award and basis for the new office building assuming What is Sam's recognized gain on receipt his objective is to minimize...
5. Joseph exchanged farmhouse that he used in his farming business for a building used by Sandy in her motorcycle manufacturing business. The farmhouse had a FMV of $345,000 and cost $285,000. The allowable depreciation was $45,000, but because of an error, Joseph only took $25,000 of depreciation. The building had a FMV of $275,000 and an adjusted basis of $315,000. Because the building was expected to increase in value rapidly, Sandy only gave Joseph $45,000 cash. What is Joseph's...
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