Year 0 1 2 Recognized Gain
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Required information
[The following information applies to the questions displayed below.]
Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell
received $50,000 in cash in year 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in year
2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar
amount.)
b. What is Russell's recognized gain in year O, year 1, and year 2?
Year
Recognized Gain
0
1
2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87f377c8-556b-40c3-ad73-583aac17d9d0%2F1e7ca802-7b4c-475b-94bf-699b70a408b8%2Fjmqetja_processed.png&w=3840&q=75)
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- Russell Corporation sold a parcel of land valued at $647,500. Its basis in the land was $472,675. For the land, Russell received $58,500 in cash in year 0 and a note providing that Russell will receive $227,000 in year 1 and $362,000 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) Q: What is Russell’s recognized gain in year 0, year 1, and year 2?Russell Corporation sold a parcel of land valued at $442,500. Its basis in the land was $274,350. For the land, Russell received $76,500 in cash in year 0 and a note providing that Russell will receive $265,000 in year 1 and $101,000 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) a. What is Russell's realized gain on the transaction? b. What is Russell's recognized gain in year 0, year 1, and year 2?The company has recieved a donation of land from a rich local philanhropist. the land originally cost the philanhropist $48,000. on the date of the donation, it had a market value of $111,000. Make the journal entry necessary on the book of the company to record the receipt of the land
- For the year ended December 31, 2018, Carla Vista Ltd. had the following transactions related to the purchase of property. Assume all transactions are for cash unless otherwise stated. Feb. 7 Purchased real estate for $ 1 million, paying $ 292,700 cash and signing a mortgage payable for the balance. The site had an old building on it and the current values of the land and building were $ 0.9 million and $ 101,400, respectively. The old building will be demolished and a new apartment building will be constructed on the site. 9 Paid legal fees of $ 20,080 on the real estate purchase of February 7. 15 Paid $ 61,670 to demolish the old building and make the land ready for the construction of the apartment building. 16 Received $ 15,880 from the sale of material from the demolished building. 28 Paid $4,000 to grade the land in preparation for the construction of the apartment building. Mar. 2 Paid architect fees of $ 67,570 to design the apartment building. July 2 The full cost for…Russell Corporation sold a parcel of land valued at $640,000. Its basis in the land was $441,600. For the land, Russell received $81,750 in cash in year 0 and a note providing that Russell will receive $182,000 in year 1 and $376,250 in year 2 from the buyer. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) b. What is Russell’s recognized gain in year 0, year 1, and year 2? ----------------- 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 no answer blank. Enter zero is applicable.) d. The fair market value of Land A is $45,000 and Metro trades Land A for Land B valued at…Russell Corporation sold a parcel of land valued at $425,000. Its basis in the land was $297,500. For the land, Russell received $101,250 in cash in year 0 and a note providing that Russell will receive $226,000 in year 1 and $97,750 in year 2 from the buyer. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is Russell's realized gain on the transaction? b. What is Russell's recognized gain in year 0, year 1, and year 2?
- Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in yar 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in yar 2 from the buyer. What is Russell’s realized gain on the transaction? What is Russell’s realized gain in year 0, year 1, and year 2?Required information [The following information applies to the questions displayed below.] In year 0, Longworth Partnership purchased a machine for $64,750 to use in its business. In year 3, Longworth sold the machine for $43,200. Between the date of the purchase and the date of the sale, Longworth depreciated the machine by $23,900. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) c. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are decreased to $16,500 (before the $1231 netting process, if applicable)? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Los) $1231 gain/(loss)Case B. Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book valueof $500,000 and a fair value of $700,000. Kapono paid $50,000 cash to complete the exchange. The exchangehas commercial substance.Required:1. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value ofthe new land?2. Repeat requirement 1 assuming that the fair value of the farmland given is $400,000 instead of $700,000.3. Repeat requirement 1 assuming that the exchange lacked commercial substance.
- Compute the charitable contribution deduction (ignoring the percentage limitation) for each of the following C corporations. If required, round your answers to nearest dollar. a. Amber Corporation donated inventory of clothing (basis of $128,500, fair market value of $160,625) to a qualified charitable organization that operates homeless shelters. XBlossom Company purchases land for $180000 cash. Blossom assumes $5900 in property taxes due on the land. The title and attorney fees totaled $1900. Blossom has the land graded for $4200. They paid $25000 for paving of a parking lot. What amount does Blossomrecord as the cost for the land?Sandhill Co. purchases land for $130000 cash. Sandhill assumes $5600 in property taxes due on the land. The title and attorney fees totaled $2700. Sandhill has the land graded for $4400. They paid $21000 for paving of a parking lot. What amount does Sandhill record as the cost for the land?