Toni asked Adler, a real estate broker, exclusive agency to sell her farm house, and promised to pay 5% commission on the sale. Toni’s friend, Deena, approached her to buy the farm house at $100,000 on 24th Nov 2010 and Toni decided to sell the farmhouse to Deena, entering into an agreement. On 1st Dec 2010 Alder found a buyer for the farmhouse who was ready to purchase the farmhouse at $105,000. However, the sale could not take place due to the prior agreement with Deena. What commission is Alder entitled to receive for this job? A. 5% of $100,000 i.e. $5,000. B. Half of 5% of $100,000 i.e. $2,500. C. 5% of $105,000 i.e. $5,250. D. Half of 5% of $105,000 i.e. $2,725. E. $0, because Toni had found the buyer.

Toni asked Adler, a real estate broker, exclusive agency to sell her farm house, and promised to pay 5% commission on the sale. Toni’s friend, Deena, approached her to buy the farm house at $100,000 on 24th Nov 2010 and Toni decided to sell the farmhouse to Deena, entering into an agreement. On 1st Dec 2010 Alder found a buyer for the farmhouse who was ready to purchase the farmhouse at $105,000. However, the sale could not take place due to the prior agreement with Deena. What commission is Alder entitled to receive for this job? A. 5% of $100,000 i.e. $5,000. B. Half of 5% of $100,000 i.e. $2,500. C. 5% of $105,000 i.e. $5,250. D. Half of 5% of $105,000 i.e. $2,725. E. $0, because Toni had found the buyer.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter12: Nonrecognition Transactions

Section: Chapter Questions

Problem 36P

See similar textbooks

Similar questions

Aki offered to sell her house and lot to Jannie for P2,000,000 who was interested in buying the same. In her letter, Aki stated that she was giving Jannie a period of one month within which to raise the amount. A week before the expiration of the period, Aki told Jannie that she is no longer willing to sell the property unless the price is increased to P3,000,000. May Jannie compel Aki to accept the P2,000,000 first offered? No, because the increase in the price is 50% and is deemed iniquitous and unconscionable. Yes, the period is deemed for the benefit of Darleane as it was Tin who voluntarily offered the period to her No, because the promise to sell had no cause or consideration distinct from the selling price Yes, because this is an obligation with a period intended for the benefit of both parties
Spiderman offered, in writing, to sell Black Widow a piece of land for $200,000. Spiderman signed the offer and wrote that it was contingent on Black Widow accepting within 10 days. On day five, Spiderman received and accepted a better offer from Captain America and transferred the land to Captain America on that day. Black Widow, who didn't know about the sale to Captain America, called Spiderman on day seven and accepted his offer. Spiderman told Black Widow it was too late, that he got a better offer from Captain America, and that Captain America now owned the land. Black Widow sues Spiderman for breach of contract. Judgment for whom? Choose the best answer. a. Judgment for Black Widow, because Spiderman's offer was irrevocable for ten days, and Black Widow accepted on the seventh day b. Judgment for Spiderman, because her offer was revocable c. Judgment for Black Widow, because Spiderman's offer was in writing d. Judgment for Spiderman, because even if Spiderman is liable to Black…
The Smiths purchase a $600,000 house and must sell their old home inorder to make a 20 percent down payment plus closing costs of $7,000 onthe new house. Currently, they have a mortgage balance of $100,000 ontheir old home, which has been appraised at $300,000. They have beenpre-approved by the lender to qualify for a $480,000 mortgage in the newhome. The lender offers a bridge loan at 10 percent simple interest. Theclosing date on the new house is February 13, and the Smiths sell their oldhome on May 15.a. How much cash must the Smiths put down on their new house?b. How much equity do the Smiths have in their old house? c. How much must they borrow if they take a bridge loan?d. What is the dollar amount of interest paid on the bridge loan?
Alyson, another investor, has also purchased an IIP for the original price of $984.31767830979. Two years pass, and Alyson has just received the annual payment of $37. She is considering selling the IIP. Again, the original information regarding IIP's has been repeated below. Customers pay $984.31767830979 to buy an IIP. The IIP will pay out $37 at the end of each year for 12 years The IIP will pay out a further single payment of $1,000 after 12 years There are no further payments after this single payment at time 12. a. Barney is willing to purchase the IIP from Alyson. He requires a return of 5.43% p.a. effective. What is the maximum price Barney is willing to pay? Give your answer in dollars, to the nearest cent.
In 2019 Lulu Lowman sold her personal residence for $300,000 that she owned and lived in since 2009. When selling the property in 2019, Lulu paid the real estate agents a commission of $18,000. In 2009, Lulu had paid $200,000 for the home and currently owes $110,000 on the mortgage. Over the years, Lulu updated the kitchen and bathrooms, amounting to $44,000. When she decided to sell the home, she spent $2,000 to paint the interior, spruce up the landscaping and steam clean the carpets. What is Lulu’s (a) amount realized, (b) adjusted basis, (c) gain or loss realized, and (d) gain or loss recognized. Explain.
Candy purchased a 3 bedrooms house in St Kilda on the 1’s March 2015 for the cost of$1.3M. She paid a stamp duty on the transaction for $74,750. She also incurred legal fees of$3,500. She then rent the apartment out straight away for the amount of $30,000/year net.In the year of 2017, she renovated the kitchen and bathroom for the cost of $150,000 tomake the house looks more modern.Candy finally sold the house in November 2019 for $2.15M, incurring legal costs of $4,500and agent’s commission of $40,000.Candy also incurred interest on the amount borrowed to purchase the property of $120,000and council rates totalling $20,000Required:• Calculate the cost base for this asset• Calculate the capital gain or loss for the disposal of the asset• Calculate Candy’s assessable income for Income year 19/20 assuming she made a salaryof $90,000, net rental ncome of $30,000 an capital loss of $4,250 from the sale of someshares (purchased 10 years ago)• Would your answer will be different if Candy…
In 2018, José purchased a house for $197,400. He used the house as his personal residence. In September 2021, when the fair market value of the house was $315,700, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ b. Under MACRS, the cost recovery period for residential rental real estate is convention. c. The cost recovery for 2021 is $ years, and it is subject to the
Madam Phew is one of the developer company directors, Availing Property Sdn Bhd. Madam Phew acquired a piece of raw land in 2018 with the purpose to distribute the land for 3 of her children. She consumed her own saving and 40% of the balanced of the acquisition was financed by bank borrowings. In 2019, Madam Phew develop the land for residential use. In 2020, Madam Phew received an interesting offer from Availing Property Sdn Bhd to purchase the land. She sold the land amounting to RM1,250,000 to Availing Property Sdn Bhd in 2021. Madam Phew submitted the Real Property Gains Tax (RPGT) return instead of income tax return to Inland Revenue Board (IRB) for the disposal. Required: Discuss the difference between RPGT and income tax, and state the argument whether the disposal is subject to tax?
1. Josh is a builder and helping Greg at weekend to build his shed, Greg promised Joshto give him his old caravan (which cost him $12,000 on 1’st July 2000 when he boughtit). Assume the shed was done on 1’st July 2020 when Greg handed over the Caravanto Josh. (Assume the value of Josh’s works was for $15,000, and the market value ofthe caravan was for $16,000)Discuss whether Josh needs to declare it as an ordinary income or not? please put 3 references