Part A
Gain recognized |
$31179 |
Cash received in year of sale: |
||
Cash at closing |
75000 |
|
August principal payment |
33750 |
|
108750 |
||
gross profit percentage ((750000-535000)/750000) |
28.67% |
|
Gain recognized |
$31179 |
Part B
Tax basis |
$457429 |
Original face value of note |
675000 |
|
Less August principal payment |
(33750) |
|
TPW’s tax basis in the note at year end |
641250 |
|
Deferred gain: |
||
Realized gain |
215000 |
|
Recognized gain |
(31179) |
|
(183821) |
||
TPW’s tax basis in note |
$457429 |
You received partial credit In the previous attempt Check my work TPW, a calendar year taxpayer,...
TPW, a calendar year taxpayer, sold land with a $535,000 tax basis for $750,000 in February. The purchaser paid $75,000 cash at closing and gave TPW an interest-bearing note for the $675,000 remaining price. In August, TPW received a $55,950 payment from the purchaser consisting of a $33,750 principal payment and a $22,200 interest payment. In the first year after the year of sale, TPW received payments totaling $106,900 from the purchaser. The total consisted of $67,500 principal payments and...
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remaining price. In August, TPW received a $58,550 payment from the
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of accounting.
Compute the difference between TPW’s book and tax income
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Why is Req 5 wrong?
Homework Help Save You received partial credit in the previous attempt Check my work View pre Exercise 10-3A Computing bond interest and price; recording bond issuance LO C2 Bringham Company issues bonds with a par value of $690,000 on their stated the date. The bonds mature in 7 years and pay 7% annual interest in semiannual payments. On the issue date, the annual market rate for the bonds is 10% (Table B.1. Table B.2. Table...
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Check my work Assume that you are about to sell property (a vacant parcel of real estate) you own but otherwise have no use for. The net-of-sales- commission selling price for the property is $480,000. You are willing to finance this transaction over a 22-year period and have told the buyer that you expect a 14% pretax return on the transaction. The buyer has asked you for a payment schedule under several alternatives. 0.25 points Required: 1. What will be...