Comprehensive Problem 11-69 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6) (Static) Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year 0 and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Complete this question by entering your answers in the tabs below. Required a Required b Required c Assuming that Hauswirth receives $ Required c in year 0 and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Note: Round "Gross Profit Percentage" to 2 decimal places. Description Sales price Original Basis Accumulated Depreciation Adjusted Basis Gain (Loss) Realized Depreciation Recapture Gain Eligible for Installment Reporting Gross Profit Percentage §1231 gain recognized in year 0 §1231 gain recognized in year 1 < Required b Amount % Character Required c>
Comprehensive Problem 11-69 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6) (Static) Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $65,000, and it has claimed $23,000 of depreciation expense against the building. Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount. Required: a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $20,000 in cash in year 0 and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Complete this question by entering your answers in the tabs below. Required a Required b Required c Assuming that Hauswirth receives $ Required c in year 0 and a $50,000 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. Note: Round "Gross Profit Percentage" to 2 decimal places. Description Sales price Original Basis Accumulated Depreciation Adjusted Basis Gain (Loss) Realized Depreciation Recapture Gain Eligible for Installment Reporting Gross Profit Percentage §1231 gain recognized in year 0 §1231 gain recognized in year 1 < Required b Amount % Character Required c>
Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions
Section: Chapter Questions
Problem 76P
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Transcribed Image Text:Comprehensive Problem 11-69 (LO 11-1, LO 11-2, LO 11-3, LO 11-4, LO 11-5, LO 11-6) (Static)
Hauswirth Corporation sold (or exchanged) a warehouse in year O. Hauswirth bought the warehouse several years ago for $65,000,
and it has claimed $23,000 of depreciation expense against the building.
Note: Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final
answers to the nearest whole dollar amount.
Required:
a. Assuming that Hauswirth receives $50,000 in cash for the warehouse, compute the amount and character of Hauswirth's
recognized gain or loss on the sale.
b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $50,000,
compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land.
c. Assuming that Hauswirth receives $20,000 in cash in year O and $50,000 note receivable that is payable in year 1, compute the
amount and character of Hauswirth's gain or loss in year O and in year 1.
Complete this question by entering your answers in the tabs below.
Required a Required b
Required c
Assuming that Hauswirth receives $ Required c in year 0 and a $50,000 note receivable that is payable in year 1,
compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1.
Note: Round "Gross Profit Percentage" to 2 decimal places.
Description
Sales price
Original Basis
Accumulated Depreciation
Adjusted Basis
Gain (Loss) Realized
Depreciation Recapture
Gain Eligible for Installment Reporting
Gross Profit Percentage
§1231 gain recognized in year 0
§1231 gain recognized in year 1
< Required b
Amount
%
Character
Required c
>
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