None What is the basis of the new property in each of the following situations? What is the recognized gain or loss?Required:a. Rental house with an adjusted basis of $94,000 exchanged for a personal-use river cottage with an FMV of $120,000.b. General Motors common stock with an adjusted basis of $20,500 exchanged for Quaker Oats common stock with an FMV of$16,250.c. Land and building with an adjusted basis of $20,200 used as a furniture repair shop exchanged for land and a building with an FMVof $45,800 used as a car dealership.d. An office building with an adjusted basis of $21,600 exchanged for a heavy-duty truck with an FMV of $26,100. Both properties areheld for 100% business purposes.e. A residential rental property held for investment with an adjusted basis of $237,100 exchanged for a warehouse to be held forinvestment with an FMV of $195,300.Note: For all requirements, if no gain or loss is recognized, select "No gain or loss".a. Basis of the new propertya.b. Basis of the new propertyb.C.Basis of the new propertyCd. Basis of the new propertyde. Basis of the new propertye.Amount

( 1 ) Rental house with an adjusted basis of $94000 exchanged for a personal-use river cottage with…

Answered: What is the basis of the new property…

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter15: Property Transactions: Nontaxable Exchanges

Section: Chapter Questions

Problem 35P

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Calculate and allocate basis for the following problems. 1. A property is acquired for a purchase price of $230,000 cash plus acquisition costs of $20,000. The tax assessment for this property is as follows: Assessed Value Land Improvements Total assessments $40,000 160,000 $200,000 a. What is the acquisition basis for this property? b. What is the allocation for land? c. What is the allocation for improvements?
Calculate the assessed value (in $) and the property tax due (in $) on the property. Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $155,000 100 $ $1.20 per $100 $
Calculate the assessed value (in $) and the property tax due (in $) on the property. (Round your answers to the nearest cent.) Fair MarketValue AssessmentRate AssessedValue PropertyTax Rate PropertyTax Due $342,900 72 $ 5.1% $
Which of the following shall be subject to VAT? * a. Sale of residential house and lot by the owners for P5,000,000. b. Sale of private car by its owner for P1,500,000 c. Sale of commercial property by a real estate dealer for P1,000,000 d. All of the above.
Accounting When you dispose of a property and end up with a gain or a loss, it may be treated in one of 2 ways. What are they? When you dispose of personal-use property, you usually do not have a capital gain. Why not? To calculate any capital gain or loss, you need to know the following 3 amounts: the proceeds of disposition the adjusted cost base (ACB) the outlays and expenses incurred to sell your property Using these three amounts, what is the formula to calculate your capital gain or loss? 4. Capital Gains are reported on Schedule 3. What line does the sale of Personal Use Property go on?
Which of the following would be considered a capital expenditure? (A 22) O Making a payment on accounts payable O Paying accumulated income taxes O Paying shipping insurance on new equipment Retiring a bond payable taken out for construction Which of the following costs CANNOT be capitalized as part of land? Price paid to purchase the land. Clearing old buildings and other obstructions Obligations assumed when buying the land Overhead costs for construction projects on the land
if a company is considering the purchase of a parcel of land that was acquired by the seller for $89,000 is offered for sale at 158,000 is assessed for tax purposes at 99,000 is considered by the purchaser as easily being worth 148,000 and is purchased for 145,000 the land should be recored in the purchaser books at (A. 99,000, B. 145,000, C. 146,500, D. 148,000, E. 158,000)
What are the maximum postponed gain or loss and the basis for the replacement property for the following involuntary conversions? If an amount is zero, enter "0". Property Type of Conversion Amount Realized Adjusted Basis Amount Reinvested a. Drugstore (business) Casualty $160,000 $130,000 $110,000 b. Apartments (investment) Condemned 100,000 125,000 175,000 c. Grocery store (business) Casualty 400,000 300,000 450,000 d. Residence (personal) Casualty* 16,000 18,000 17,000 e. Vacant lot (investment) Condemned 240,000 160,000 220,000 f. Residence (personal) Casualty* 20,000 18,000 19,000 g. Residence (personal) Condemned 18,000 20,000 26,000 h. Apartments (investment) Condemned 150,000 100,000 200,000 * Casualty occurred in a Federally declared disaster area. Adjusted Basisof Old Machine Realized Gain/Realized Loss PostponedAmount Basis…
Which of the following is a requirment regarding replacement property for a deferred like kind exchange A Replacement proepty must be identified within 3 years before the transfer of the TP propery. B. The tax return for the year of the trnsfer mqy no be filed before the replacemnt property is acquired C the value of identified replacemnt properties may not exceed 500% the aggre
Grover Inc. wishes to use the revaluation model for this property: Building Gross Value Building Accumulated Depreciation Net carrying value The fair value for the property is $100,000. What amount would be booked to the "accumulated depreciation" account if Grover chooses to use the proportional method to record the revaluation? OA. $20,000 credit B. $10,000 credit O C. SO Before Revaluation $120,000 40,000 80,000 D. $10,000 debit
Required: Assuming that ABC plans to sell the asset by the end of the fifth year, compute the following: 1. Cost of the land to be recognized in the accounting books 2. Selling price of the land 3. Cost to sell
26. What is the general formula for calculating the gain or loss realized on the sale or other disposition of property? Include in your answer a discussion of how to calculate each "element" of the formula for calculating gain or loss realized, assuming that the property is purchased at original cost. Also, discuss common circumstances where the basis of property is "adjusted" over time.

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