Maud exchanges a rental house at the beach with an adjusted basis of $225,000 and a fair market value of $200,000 for a rental house at the mountains with a fair market value of $180,000 and cash of $20,000. What is the recognized gain or loss?     a. ($20,000)   b. ($25,000)   c. None of these   d. $20,000   e. $0

am. 110.

OCD exchanged old realty for new like-kind realty. OCD’s adjusted basis in the old realty was $31,700 ($60,000 initial cost − $28,300 accumulated depreciation), and its FMV was $48,000. Because the new realty was worth only $45,000, OCD received $3,000 cash in addition to the new realty.   Required: a-1. Compute OCD's realized gain. a-2. Determine the amount and character of any recognized gain. b. Compute OCD’s basis in its new realty.

Pharoah Clinic purchases land for $490000 cash. The clinic assumes $5300 in property taxes due on the land. The title and attorney fees totaled $2600. The clinic had the land graded for $6400. What amount does Pharoah Clinic record as the cost for the land? $497900. $496400. $490000. $504300.

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Land purchased for 60000 in 2000 and used in the taxpayers bsuiness is sold in the current year for 67000. The sale of the land results in: A. 7000 short term capital gain. B. 7000 long term capital gain. C. 7000 of ordinary income. D. 7000 of section 1231 gain. E. None of the above

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Assume the seller owes $113,000 on a loan for the land. After receiving the $770,000 cash in, the seller pays $113,000 that's owed.

Assume there are three separate real estate companies: US Realty (which applies the cost model with straight-line depreciation), UK Realty (which applies the revaluation model), and Singapore Realty (which applies the fair value model). Assume that on January 1, 2020, each company pays $1,000 to obtain an investment property, comprised of the land of negligible value and a building worth $1,200 (fair value). The building has a 10-year useful life, no residual value, and the fair value of the property is close to its value-in-use. If the companies want to sell the property, the transaction cost is negligible. (Hint: Use the account ``Fair Value Gain/Loss on Investment Property’’ when applying the fair value model.)  Instructions Prepare the journal entries for the following events and transactions. (1) Acquisition on January 1, 2020 (2) Fair value of the building is $1,300 on December 31, 2020 (3) Fair value of the building is $1,100 million on December 31, 2021 (4) Fair value of the…