Homework Answers
|
Realized gain |
$634500 |
|
Recognized gain |
$306500 |
|
Adjusted basis in new property |
$299000 |
|
Description |
Amount |
Explanation |
|
(1) Amount realized in like-kind |
600750 |
FMV of land |
|
(2) Amount realized from boot |
33750 |
Mortgage relief |
|
(3) Total amount realized |
634500 |
(1) + (2) |
|
(4) Adjusted basis |
328000 |
$263,000 − $52000 + $88,000 (land) + $29000 (cash paid) |
|
(5) Gain realized |
306500 |
(3) − (4) |
|
(6) Gain recognized |
4750 |
Lesser of [(2) − cash paid or liability assumed] or (5) |
|
(7) Deferred gain |
301750 |
(5) − (6) |
|
Adjusted basis in new property |
299000 |
(1) − (7) |
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Prater Inc. enters into an exchange in which it gives up its warehouse on...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Original Basis Accumulated Depreciation $52,000 Transferred FMV $517,500 $ 263,000 88,000 33,750 29,000 Warehouse Land 88,000 Mortgage on warehouse Cash 29,000 Assets Received FMV Land $600.750 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Realized...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...
Prater Inc. enters into an exchange in which it gives up its
warehouse on 10 acres of land and receives a tract of land. A
summary of the exchange is as follows:
Transferred
FMV
Original
Basis
Accumulated
Depreciation
Warehouse
$
410,000
$
266,000
$55,000
Land
72,500
72,500
Mortgage on warehouse
53,750
Cash
20,750
20,750
Assets Received
FMV
Land
$449,500
What is Prater’s realized and recognized gain on the exchange and
its basis in the assets it received in the exchange?...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $59,500 Transferred Warehouse Land Mortgage on warehouse Cash Original FMV Basis $ 457,500 $ 239,000 74,500 74,500 33, 250 24,500 24,500 Assets Received Land FMV $523,250 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $76,000 Transferred Warehouse Land Mortgage on warehouse Cash Original Basis $ 241,000 97,000 FMV $525,000 97,000 31,500 19,500 19,500 Assets Received Land FMV $610,000 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Realized...
XYZ Company enters into an exchange transaction with LMN Company. XYZ Company exchanges a building from...
XYZ Company enters into an exchange transaction with LMN Company. XYZ Company exchanges a building from one of its retail locations to LMN Company and ABC receives land to develop an amusement park. The building from ABC has a FMV of $385,000 and an original purchase price of $310,000 and depreciation taken of $65,000. The land from LMN has a basis and FMV of $295,000 and they give $90,000 cash to ABC. Does this exchange qualify for a like-kind exchange...
Help please
Part 1: Answer the below questions. You must show your calculations and explain your answer. XYZ Company enters into an exchange transaction with LMN Company. XYZ Company exchanges a building from one of its retail locations to LMN Company and ABC receives land to develop an amusement park. The building from ABC has a FMV of $475,000 and an original purchase price of $400,000 and depreciation taken of $60,000. The land from LMN has a basis and FMV of $375,000 and...
PROBLEM 1: Jerry transfers two assets to a corporation as part of a Sec. 351 exchange....
PROBLEM 1: Jerry transfers two assets to a corporation as part of a Sec. 351 exchange. The first asset has an adjusted basis of $70,000 and an FMV of $50,000. The second asset has an adjusted basis of $70,000 and an FMV of $150,000. The FMV of the stock received is $180,000, and he also receives $20,000 cash. The realized and recognized gain on the second asset is A) $80,000 realized; $20,000 recognized. B) $80,000 realized; $15,000 recognized. C) $20,000...
Brian incorporates his sole proprietorship as Fancy Corporation and transfers its assets to Fancy in exchange...
Brian incorporates his sole proprietorship as Fancy Corporation and transfers its assets to Fancy in exchange for all 100 shares of Fancy stock and five $12,000 interest-bearing notes. The stock has a(n) $120,000 FMV. The notes mature consecutively on the first five anniversaries of the incorporation date. The assets transferred are as follows: E: (Click the icon to view the asset information.) Read the requirements. Requirement a. What are the amounts and character of Brian's recognized gains or losses? Complete...
Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received...
Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received and with a for market value of $500.000 Bronco's tax basis in the Mustang stock was $200,000. The land had a tax basis to Mustang Company of $100,000. What amount of gain does Bronco recognize in the exchange, if any, and what is its tax basis in the land it receives? Multiple Choice O No gain recognized and a basis in the land of...
Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information...
Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Jasmine Den FMV $ 500,000 $ 530,000 Adjusted tax basis 410,000 283,000 Mortgage 70,000 100,000 Pursuant to the exchange, Jasmine assumed the mortgage on the Den property, and Den assumed the mortgage on the Jasmine property. Compute Den's gain recognized on the exchange and its tax basis in the property received from Jasmine. $100,000 gain recognized; $383,000 basis...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Original Basis Accumulated Depreciation $52,000 Transferred FMV $517,500 $ 263,000 88,000 33,750 29,000 Warehouse Land 88,000 Mortgage on warehouse Cash 29,000 Assets Received FMV Land $600.750 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Realized...
Prater Inc. enters into an exchange in which it gives up its
warehouse on 10 acres of land and receives a tract of land. A
summary of the exchange is as follows:
Transferred
FMV
Original
Basis
Accumulated
Depreciation
Warehouse
$
410,000
$
266,000
$55,000
Land
72,500
72,500
Mortgage on warehouse
53,750
Cash
20,750
20,750
Assets Received
FMV
Land
$449,500
What is Prater’s realized and recognized gain on the exchange and
its basis in the assets it received in the exchange?...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $59,500 Transferred Warehouse Land Mortgage on warehouse Cash Original FMV Basis $ 457,500 $ 239,000 74,500 74,500 33, 250 24,500 24,500 Assets Received Land FMV $523,250 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the...
Prater Inc. enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of land. A summary of the exchange is as follows: Accumulated Depreciation $76,000 Transferred Warehouse Land Mortgage on warehouse Cash Original Basis $ 241,000 97,000 FMV $525,000 97,000 31,500 19,500 19,500 Assets Received Land FMV $610,000 What is Prater's realized and recognized gain on the exchange and its basis in the assets it received in the exchange? Realized...
Brian incorporates his sole proprietorship as Fancy Corporation and transfers its assets to Fancy in exchange for all 100 shares of Fancy stock and five $12,000 interest-bearing notes. The stock has a(n) $120,000 FMV. The notes mature consecutively on the first five anniversaries of the incorporation date. The assets transferred are as follows: E: (Click the icon to view the asset information.) Read the requirements. Requirement a. What are the amounts and character of Brian's recognized gains or losses? Complete...
Mustang Company was completely liquidated. In the exchange for its 80 percent interest, Bronco Corporation received and with a for market value of $500.000 Bronco's tax basis in the Mustang stock was $200,000. The land had a tax basis to Mustang Company of $100,000. What amount of gain does Bronco recognize in the exchange, if any, and what is its tax basis in the land it receives? Multiple Choice O No gain recognized and a basis in the land of...
Jasmine Inc. and Den Company entered into an exchange of real property. Here is the information for the properties to be exchanged. Jasmine Den FMV $ 500,000 $ 530,000 Adjusted tax basis 410,000 283,000 Mortgage 70,000 100,000 Pursuant to the exchange, Jasmine assumed the mortgage on the Den property, and Den assumed the mortgage on the Jasmine property. Compute Den's gain recognized on the exchange and its tax basis in the property received from Jasmine. $100,000 gain recognized; $383,000 basis...
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