Homework Answers
ans (a) Joseph's outside basis (Tax Basis) =cash + equipment
=$25,750+$14,800
=$40,550
Ans (b) berry hill's basis in equipment = $14,800
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[The following information applies to the questions displayed below.) Joseph contributed $25,750 in cash and equipment...
Required information (The following information applies to the questions displayed below.] Cosmo contributed land with a...
Required information (The following information applies to the questions displayed below.] Cosmo contributed land with a fair market value of $352,500 and a tax basis of $121,250 to the Y Mountain partnership in exchange for a 20 percent profits and capital interest in the partnership. The land is secured by $139,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will...
! Required information [The following information applies to the questions displayed below.) Ron and Hermione formed...
! Required information [The following information applies to the questions displayed below.) Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock: Building Land Total THV $112,000 168,000 $280,000 Tax- Adjusted Basis $ 28,000 112,000 $140,000 To equalize the exchange. Wizard Corporation paid...
Required information [The following information applies to the questions displayed below.] David’s basis in the Jimsoo...
Required information
[The following information applies to the questions
displayed below.]
David’s basis in the Jimsoo Partnership is $65,000. In a
proportionate liquidating distribution, David receives cash of
$9,400 and two capital assets: (1) Land A with a fair market value
of $24,800 and a basis to Jimsoo of $19,600, and (2) Land B with a
fair market value of $11,800 and a basis to Jimsoo of $19,600.
Jimsoo has no liabilities.
c1. If the two parcels of land had...
Required information [The following information applies to the questions displayed below. Zhang incorporated her sole proprietorship...
Required information [The following information applies to the questions displayed below. Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adiusted bases: Adjusted FMV Basis Building Land Total Inventory 64,000 32,000 480,000 736,000 320,000 960,000 $1,280,000 $1,312,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The...
Required information (The following information applies to the questions displayed below) Metro Corp. traded Land A...
Required information (The following information applies to the questions displayed below) 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...
Required information [The following information applies to the questions displayed below.] On October 1, Ebony Ernst...
Required information [The following information applies to the questions displayed below.] On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,200 in assets in exchange for its common stock to launch the business. On October 31, the company’s records show the following items and amounts. Cash $ 10,710 Cash dividends $ 2,180 Accounts receivable 14,800 Consulting revenue 14,800 Office supplies 3,450 Rent expense 3,750 Land 46,030 Salaries expense 7,160 Office equipment 18,170 Telephone expense 780...
10 Tim, Al, and Pat contributed assets to form the equal TAP Partnership. Tim contributed cash...
10 Tim, Al, and Pat contributed assets to form the equal TAP Partnership. Tim contributed cash of $40,000 and land with a basis of $80,000 (fair market value of $60,000). Al contributed cash of $60,000 and land with a basis of $50,000 (fair market value of $40,000). Pat contributed cash of $60,000 and a fully depreciated property ($0 basis) valued at $40,000. Which of the following tax treatments is not correct? a.Pat realizes a gain of $40,000 but recognizes $0...
The following information applies to the questions displayed below.] Aruna, a sole proprietor, wants to sell...
The following information applies to the questions displayed below.] Aruna, a sole proprietor, wants to sell two assets that she no longer needs for her business. Both assets qualify as §1231 assets. The first is machinery and will generate a $22,500 §1231 loss on the sale. The second is land that will generate a $7,400 §1231 gain on the sale. Aruna’s ordinary marginal tax rate is 32 percent.(Input all amounts as positive values.) a. Assuming she sells both assets in...
Required information The following information applies to the questions displayed below.) Ivan incorporated his sole proprietorship...
Required information The following information applies to the questions displayed below.) Ivan incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Inventory Building Land Total FMV $ 19,600 83,500 78,250 $181,350 Adjusted Basis $ 37,250 54,750 40,250 $132,250 The fair market value of the corporation's stock received in the exchange equaled...
Required information [The following information applies to the questions displayed below.] Kase, an individual, purchased some...
Required information [The following information applies to the questions displayed below.] Kase, an individual, purchased some property in Potomac, Maryland, for $152,000 approximately 10 years ago. Kase is approached by a real estate agent representing a client who would like to exchange a parcel of land in North Carolina for Kase’s Maryland property. Kase agrees to the exchange. What is Kase’s realized gain or loss, recognized gain or loss, and basis in the North Carolina property in each of the...
Required information (The following information applies to the questions displayed below.] Cosmo contributed land with a fair market value of $352,500 and a tax basis of $121,250 to the Y Mountain partnership in exchange for a 20 percent profits and capital interest in the partnership. The land is secured by $139,000 of nonrecourse debt. Other than this nonrecourse debt, Y Mountain partnership does not have any debt. (Leave no answer blank. Enter zero if applicable.) a. How much gain will...
! Required information [The following information applies to the questions displayed below.) Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted bases in return for 50 percent of the corporation's stock: Building Land Total THV $112,000 168,000 $280,000 Tax- Adjusted Basis $ 28,000 112,000 $140,000 To equalize the exchange. Wizard Corporation paid...
Required information
[The following information applies to the questions
displayed below.]
David’s basis in the Jimsoo Partnership is $65,000. In a
proportionate liquidating distribution, David receives cash of
$9,400 and two capital assets: (1) Land A with a fair market value
of $24,800 and a basis to Jimsoo of $19,600, and (2) Land B with a
fair market value of $11,800 and a basis to Jimsoo of $19,600.
Jimsoo has no liabilities.
c1. If the two parcels of land had...
Required information [The following information applies to the questions displayed below. Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adiusted bases: Adjusted FMV Basis Building Land Total Inventory 64,000 32,000 480,000 736,000 320,000 960,000 $1,280,000 $1,312,000 The corporation also assumed a mortgage of $100,000 attached to the building and land. The...
Required information (The following information applies to the questions displayed below) 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...
Required information The following information applies to the questions displayed below.) Ivan incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases: Inventory Building Land Total FMV $ 19,600 83,500 78,250 $181,350 Adjusted Basis $ 37,250 54,750 40,250 $132,250 The fair market value of the corporation's stock received in the exchange equaled...
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