Jose sells stock with an adjusted basis of $65,000 to his son, Jesse, for its fair...
Jose sells stock with an adjusted basis of $65,000 to his son, Jesse, for its fair market value of $40,000. Jesse sells the stock one year later for $50,000. Jesse will recognize a gain(loss) on the subsequent sale of
A) $0.
B) $10,000 gain.
C) $15,000 gain.
D) $20,000 loss.
Homework Answers
Jesse receive the property as its fair market value = $ 40000.
Jesse sales the stock one year later for $ 50000.
So, jesse will recognise a gain on the subsequent sale . Amount realised in stock + fair market value of stock - adjusted basis = gain on stock.
In the given case gain on stock = $ 50000 + $ 40000 - $ 65000 .
= $ 25000.
So, answer is A $ 0.
Gain $ 25000 will be not given in answer.
So, answer is
Add Answer to:
Jose sells stock with an adjusted basis of $65,000 to his son,
Jesse, for its fair...
Nikeya sells land (adjusted basis of $120,000) to her adult son, Shamed, for its appraised value...
Nikeya sells land (adjusted basis of $120,000) to her adult son, Shamed, for its appraised value of $95,000. Assume all of Shamed’s sales are to a non-related party. a) How much gain or loss does Nikeya recognize on the sale? b) How much gain or loss does Shamed recognize if he later sells the land for $125,000? c) What if Shamed later sells the land for $90,000? d) What if Shamed later sells the land for $105,000?
2. Wood gave his son Arnold stock with a basis of $30,000 and a fair market...
2. Wood gave his son Arnold stock with a basis of $30,000 and a fair market value at the date of the gift of $50,000. No gift taxes were paid on the gift. Arnold subsequently sold the stock for $28,000. What is Arnold's recognized gain or loss?
3. (55 points) The adjusted basis of Peter Palmer's partnership interest is $50,000. In complete liquidation...
3. (55 points) The adjusted basis of Peter Palmer's partnership interest is $50,000. In complete liquidation of his interest in the partnership, Peter receives $15,000 in cash, inventory items having a basis to the partnership of $20,000 and a fair market value of $22,000, and two parcels of land.. Parcel I has an adjusted basis to the partnership of $18,000 and a fair market value of $15,000 and Parcel II has an adjusted basis to the partnership of $12,000 and...
Mary transfers a building (adjusted basis of $15,000 and fair market value of $90,000) to White...
Mary transfers a building (adjusted basis of $15,000 and fair market value of $90,000) to White Corporation. In return, Mary receives 80% of White Corporation's stock (worth $65,000) and an automobile (fair market value of $5,000). In addition, there is an outstanding mortgage of $20,000 (taken out 15 years ago) on the building, which White Corporation assumes. With respect to this transaction: a. Mary has no recognized gain. b. White Corporation's basis in the building is $15,000.0 boobs c. Mary's...
Land A = Adjusted Basis = 190,000 , Stock Fair Market value = 10,000 Adjusted Basis...
Land A = Adjusted Basis = 190,000 , Stock Fair Market value = 10,000 Adjusted Basis =4000 Land B = Fair Market value 240,000 What is realized Gain ? what is Recognized gain ? what is the basis for land B ?
41. In January, Lance sold stock with a cost basis of 526,000 to his brother, James,...
41. In January, Lance sold stock with a cost basis of 526,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions? a. Disallowed loss to James of $2,000; gain to Lance of $1,000 b. Disallowed loss to Lance of $2,000; gain to James of $3.000. c. Deductible loss to Lance...
1. Bob owned a duplex used as rental property. The duplex had an adjusted basis to...
1. Bob owned a duplex used as rental property. The duplex had an adjusted basis to Bob of $86,000 and a fair market value of $300,000. Bob transferred the duplex to his brother, Carl, in exchange for a triplex that Carl owned. The triplex had an adjusted basis to Carl of $279,000 and a fair market value of $300,000. Two months after the exchange, Carl sold the duplex to his business associate to whom he was not related for $312,000....
Carlton holds undeveloped land for investment. His adjusted basis in the land is $200,000, and the...
Carlton holds undeveloped land for investment. His adjusted basis in the land is $200,000, and the FMV is $325,000. On November 1, 2018, he exchanges this land for land owned by his son, who is 31 years old. The appraised value of his son’s land is $320,000 with a basis of $310,000. 1.Calculate Carlton’s realized and recognized gain or loss from the exchange with his son and on Carlton’s subsequent sale of the land to a real estate agent on...
82. In 2018, Sally transferred a building with an adjusted basis of $40,000 and a fair...
82. In 2018, Sally transferred a building with an adjusted basis of $40,000 and a fair market value of $45,000 to Sandy Corporation. In exchange, she received the following: 80% of Sandy Corporation's only class of stock, FMV of $20,000 Equipment with a FMV of $25,000 and an adjusted basis of $10,000 What is Sandy Corporation's basis in the building received in the transfer? $5,000 $25,000 $45,000 $50,000 None of the above
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...
3. (55 points) The adjusted basis of Peter Palmer's partnership interest is $50,000. In complete liquidation of his interest in the partnership, Peter receives $15,000 in cash, inventory items having a basis to the partnership of $20,000 and a fair market value of $22,000, and two parcels of land.. Parcel I has an adjusted basis to the partnership of $18,000 and a fair market value of $15,000 and Parcel II has an adjusted basis to the partnership of $12,000 and...
Mary transfers a building (adjusted basis of $15,000 and fair market value of $90,000) to White Corporation. In return, Mary receives 80% of White Corporation's stock (worth $65,000) and an automobile (fair market value of $5,000). In addition, there is an outstanding mortgage of $20,000 (taken out 15 years ago) on the building, which White Corporation assumes. With respect to this transaction: a. Mary has no recognized gain. b. White Corporation's basis in the building is $15,000.0 boobs c. Mary's...
41. In January, Lance sold stock with a cost basis of 526,000 to his brother, James, for $24,000, the fair market value of the stock on the date of sale. Five months later, James sold the same stock through his broker for $27,000. What is the tax effect of these transactions? a. Disallowed loss to James of $2,000; gain to Lance of $1,000 b. Disallowed loss to Lance of $2,000; gain to James of $3.000. c. Deductible loss to Lance...
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...
Most questions answered within 3 hours.
-
can someone please explain for me in any easy way what does
Dipole mean ?
asked 8 minutes ago -
Consider the following grammar:
<S> → <A> a <B> b
<A> → <A> b | b...
asked 8 minutes ago -
Chapter’s 2 “Dominos Sizzles with Pizza Tracker” Case Study.
Ansewer the following questions:
1) What kinds...
asked 11 minutes ago -
It's a snowy day and you're pulling a friend along a level road
on a sled....
asked 10 minutes ago -
4.14D Select a diameter of a steel driveshaft
that transmits 250 hp at 5000 rpm. Bending...
asked 16 minutes ago -
1 4 7 10
2 5 8 11
3 6 9 12
I want to print...
asked 15 minutes ago -
In a statistics class there are 12 students. Five of the
students are seniors and the...
asked 18 minutes ago -
Preparation of Cyclohexene From
Cyclohexanol
organic chemistry
What is the function of each of the following...
asked 39 minutes ago -
***EDIT: This was all the data that was provided.
Please show all work and formulas used!...
asked 42 minutes ago -
Assume that when adults with smartphones are randomly selected,
48% use them in meetings or classes....
asked 1 hour ago -
A motor spins up from rest to an angular velocity of 165 rad/s
in 1.2 s....
asked 57 minutes ago -
An entomologist sprayed 120 adult Melon flies with a specific
low concentration of malathion and observed...
asked 1 hour ago