Exercise 13-30 (Algorithmic) (LO. 3)Juliana purchased land three years ago for $55,000. She made a gift of the land to Tom, her brother, in the currentyear, when the fair market value was $77,000. No Federal gift tax is paid on the transfer. Tom subsequently sells theproperty for $69,300.a. Tom's basis in the land is ssale.and he has a realizedof $and he has a realizedon theb. Assume, instead, that the land has a fair market value of $49,500 on the date of the gift, and that Tom sold theland for $47,025.Tom's basis in the land is ssale.on the

The following formula used as follows:-Realized Capital Gain arrises where Fair value > Purchased…

Answered: Juliana purchased land three years ago…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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O Sebastian originally sold his home in an installment sale for $300,000. At the time, his adjusted basis in the home was $220,000. He qualified for the Section 121 principal residence exclusion, so his gain was not included in his taxable income for the year of sale. Three years later, he repossessed the home from the buyer when the balance of the note was $275,000. He spent $8,000 on improvements and resold it within the year for $320,000. What is Sebastian's recomputed adjusted basis in the property? $228,000 $258,000 $278,000 $308,000
During the current year, Jeff sells a tract of land for $700,000. The property was received as a gift from Corina on March 10, 1995, when the property had a $240,000 FMV. The taxable gift was $230,000 because the annual exclusion was $10,000 in 1995. Corina purchased the property on April 12, 1980, for $56,000. At the time of the gift, Corina paid a gift tax of $10,000. In order to sell the property, Jeff paid a sales commission of $14,000. Read the requirements. Requirement a. What is Jeff's realized gain on the sale? Select the formula, then calculate Jeff's realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.) Minus: Realized gain Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was $50,000 as of the date of the gift? If the FMV of the gift property was $50,000 as of the date of the gift, Stan would have realized a gain on the sale of
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How much is the Gross Estate? Mr. Pim Musay, Filipino and married died in 2021, leaving his estate in favor of his surviving spouse. The following information were made available: Real property in Baguio City was acquired during marriage. Said property is supported by a barangay certification that the spouses resided in this property at the time of Mr. Musay's death. The fair market value of this property as per latest tax declaration is P15,000,000 while the zonal valuation as of the time of death is P20,000,000. Said real property was held as a mortgage in a loan applied by the spouses. As of the time of death, the outstanding balance of the mortgage payable amounted to P5,000.000. Real property in Urdaneta, Pangasinan inherited by Mr. Musay during marriage, two and a half years ago, from his late father. The fair market value per tax declaration as of his death is P8,000,000 while the zonal valuation is P12,000,000. Said property was previously taxed at a value of P10,000,000 when…
This year, Leron and Sheena sold their home for $750,000 after all selling costs. Under the following scenarios, how much taxable gain does the home sale generate for Leron and Sheena? Assume that the couple is married filing jointly. Leron and Sheena bought the home one year ago for $600,000 and lived in the home until it sold. What's the taxable gain?
oberto and Deanna live in Texas, a community property state. They purchased land as community property in 1985 for $60,000, each contributing $30,000. Deanna died and bequeathed her share of the land to Roberto. The land had a fair market value of $88,000 on Deanna's date of death. What is Roberto's total adjusted basis in the land after Deanna's death? A. $88,000 B. $30,000 C. $44,000 D. $60,000
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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. What is Bob's bases in the triplex? Select one of the answers below and show your work: a. $86,000 b. $279,000 c. $300,000 d. $312,000
Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed barbarous 20,000 mortgage on the property. What is the amount of Barbara's gain, and where on form 4797 will she report the sale?
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