Yager Corporation purchased residential real estate several years ago for $245,000, of which $35,000 was allocated to the land and $210,000 was allocated to the building. Yager took straight-line MACRS deductions of $40,000 during the years it held the property. In the current year, Yager sells the property for $320,000, of which $85,000 is allocated to the land and $235,000 is allocated to the building. Requirement What are the amount and character of Yager's recognized gain or loss on the sale? Begin by computing the gain or loss on sale. Select the formula and then enter the amounts and compute the gain or loss on the sale for the land, building and for the total. Land Building Total Recognized gain Next, determine the character of the gain or loss on sale of the land and building. (Complete all input fields. For items with a 0 balance, make sure to enter a 0 in the appropriate cell.) Total Land Building Recognized gain or loss

Simpson company purchased an asset by paying $50,000 cash and giving the seller a promissory note which requires payment of the remaining balance of $300,000 over 3 years. The company's book basis and tax basis in the asset is $350,000. TRUE or FALSE

Ted Khan owns Khan Development Inc. During 20X7, the following transactions took place: Transaction A Transaction B Transaction C Khan acquired a parcel of land for $11,400,000 (plus 2% in real estate commissions). On closing, Khan paid $45,400 in legal fees as well as $23,300 in back taxes owed on the property. The land would be used to build new semi-detached and row townhouses. Immediately following the purchase, Khan submitted a proposal to the municipality to rezone the property to residential use. Legal fees and other admin costs associated with the rezoning permits were $59,000. Upon approval, Khan completed grading and added new drainage that was required as part of the approval. The total cost of this work was $173,000. Khan also acquired another nearby parcel of land, already zoned as residential for $1,680,000. The land had two houses that were inhabitable in their current state. Khan planned to use this site to build their sales office and showrooms for the sites above. The…

Rossy Investigations purchased land, paying $97,000 cash plus a $250,000 note payable. In Addition, Rossy Investigations paid delinquent property tax of $2,000, title insurance costing $1,000, and $5,000 to level the land and remove an unwanted building. The company then constructed an office building at a cost of $440,000. It also paid $56,000 for a fence around the property, $18,000 for a sign near the entrance, and $8,000 for special lighting on the grounds. Determine the cost of the land, land improvements, and building. Land Land Improvements Building Account Purchase price Note payable Property tax Title insurance Remove building Construct building Fence Sign Lighting Totals Submit All Parts