Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building 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 Building 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 Building A is $45,000, and Metro trades Building A for Building B valued at $40,000 and $5,000 cash. Building A and Building B are like-kind property. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized $ (4) Adjusted basis (7) Deferred gain Adjusted basis in Building B

Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building 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 Building 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 Building A is $45,000, and Metro trades Building A for Building B valued at $40,000 and $5,000 cash. Building A and Building B are like-kind property. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized $ (4) Adjusted basis (7) Deferred gain Adjusted basis in Building B

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter4: Gross Income

Section: Chapter Questions

Problem 4BD

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Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building 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 Building 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.) b. The fair market value of Building A and of Building B is $40,000. The exchange qualifies as a like-kind exchange. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized (4) Adjusted basis (7) Deferred gain Adjusted basis in Building B
Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building 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 Building 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.) c. The fair market value of Building A is $35,000, and Building B is valued at $40,000. Metro exchanges Building A and $5,000 cash for Building B. Building A and Building B are like-kind property. Description Amount (1) Amount realized from Building B (2) Amount realized from boot (cash) (3) Total amount realized $ (4) Adjusted basis (7) Deferred gain Adjusted basis in Building B
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.
[The following information applies to the questions displayed below.) Metro Corporation traded Building A for Building B. Metro originally purchased Building A for $50,000, and Building 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 Building B in each of the following alternative scenarios? Note: Loss amounts should be indicated by a minus sign. Input all other amounts as positive values. Leave no answers blank. Enter zero is applicable. d. The fair market value of Building A is $45,000, and Metro trades Building A for Building B valued at $40,000 and $5,000 cash. Building A and Building B are like kind property. Description (1) Amount realized from Building B (2) Amount realized from boot (cash). (3) Total amount realized (4) Adjusted basis (5) Gain realized (6) Gain recognized (7) Deferred gain Adjusted basis in Building Br Amount S $ $ 40,000 5,000 45.000
Required information [The following information applies to the questions displayed below] Rolf exchanges an office building with FMV of $152,000 and stock with FMV of $28,400 for investment land with FMV of $180,400. Rolf's adjusted basis in the building and stock is $115,000 and $10,840, respectively. a. How much gain (or loss) will Rolf recognize on the exchange? (Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable.)
Dirt Company purchased land for $5 million dollars in 2008. At December 31, 2020 the land had a market value of $15 million. On the December 31, 2020 balance sheet Dirt valued the land at $15 million. Which of the following GAAP concepts did Dirt violate? Group of answer choices A. Historic cost concept B. Matching principle C. Separate entity assumption D. There was no violation.
How much should be recorded as the purchase price of theindividual PPE items: 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.
Wolf Computer exchanged a machine with a book value of $40,000 and a fair value of $45,000 for a very similar machine. In addition, Wolf paid $6,000 as part of the exchange. Wolf should recognize: Multiple Choice ● A gain of $11,000. A loss of $1,000. A gain of $5,000. No gain or loss.
! 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.) b. What is the amount and character of the gain or loss Longworth will recognize on the sale if the sale proceeds are increased to $67,500? Description Amount Total Gain/(Loss) Recognized Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain/(loss)
The Tuvok Company exchanged an old asset with a $125,700 tax basis and a $155,000 FMV for a new asset with a $147,250 FMV. Assume that this transaction is a like-kind exchange. Write all numbers with a comma, but no dollar sign (example: 130,000). a. For the exchange to occur (and be nontaxable), how much boot (if any) does Tuvok needs to receive? b. Calculate the gain realized: Calculate the gain recognized: c. Calculate the basis of the new asset for Tuvok: d. Assume the transaction is not a like-kind exchange and is a taxable transaction. Calculate the gain realized: Calculate the gain recognized:
Lauren Ltd bought some land on 1 January 20X4 for GHS 500,000. On 31 December 20X5, this land was revalued to GHS 700,000. On 31 December 20X7, the fair value less costs to sell off this land was estimated at GHS 400,000 and its value in use at GHS 450,000. According to IAS 36 Impairment of Assets, what amount will be included in the income statement of Lauren Ltd for the year ended 31 December 20X7 in respect of the impairment loss on this land?
1. Payor Inc. and Recipient Co. have an exchange with no commercial substance. The asset given up by Payor Inc. has a book value of P12,000 and a fair value of P15,000. The asset given up by Recipient Co. has a book value of P20,000 and a fair value of P19,000. Boot of P4,000 is received by Recipient Co. Recipient Co. should record the asset received at Group of answer choices P16,000 P19,000 P15,000 P20,000