Patrick owns a building used in his business with an adjusted basis of $300,000 and a $875,000 FMV. He exchanges the building for a building owned by Danny. Danny​'s building has a $1,000,000 FMV but is subject to a $125,000 liability. Patrick assumes Danny​'s liability and uses the building in his business.   Read the requirements.   Requirement a. What is Patrick​'s realized​ gain?   The realized gain is   Requirement b. What is Patrick​'s recognized​ gain? ​(If there is no recognized​ gain, make sure to enter​ "0" in the appropriate​ cell.)   The recognized gain is    Requirement c. What is Patrick​'s basis for the building​ received?   Patrick's basis for the building received is

Q: "A" owns 100 shares of Humdrum Corporation which he purchased several years ago for $10,000.  What…

A: Given that: Cost of 100 shares = $10,000

Q: Jim has decided to contribute some equipment he previously used in his sole proprietorship in…

A: a)where Jim has  basis of an amount of  $100000 in a machine. The Fair Market Value of the property…

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Fair Market Value - $300,000 The sale price of the duplex - $312000

Q: Alejandro purchased a building in​ 1985, which he uses in his manufacturing business. Alejandro used…

A: We have the following information: Original cost of the building: $500,000 Deductions allowed:…

Q: Should Jorge close the sale of Activity A with Juanita this year, or should he wait until next year…

A: Income tax expense:   The expenses which are related to the taxable income of the individuals and…

Q: .  Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000…

A: Given information:   Adjusted basis - $279,000 Fair Market Value - $300,000

Q: Rachelle owned land with a basis of $200,000, subject to a mortgage of $125,000.  She exchanged the…

A: Lets understand the basics. When tranaction qualified for like kidn excghange treatment then gain…

Q: in year 0, Longworth Partnership purchased a machine for $40,000 to use in its business. In year 3,…

A: GENERAL POINTS -   ** UPON THE SALE OF ASSET IF THE SALE PROCEEDS EXCEED THE COST OF ASSET THEN THE…

Q: Tom Cruiser is buying a single-family residence in Oakvile, Ontario, for $805,000. According to the…

A: Taxable income: It is the income on which tax is calculated that is to be paid to the government and…

Q: terry owns real estate with an adjusted basis of 600000 and a fair market value of 1100000. the…

A: Given information: Adjusted basis of real estate = 600,000 Fair market value = 1,100,000 Nonrecourse…

Q: Mr. XYZ is negotiating to buy a parcel of property for his business. The seller of the property is…

A: The cost concept is a component of the GAPP in accounting. When a new asset is acquired, it should…

Q: Connie recently provided legal services to the Winterhaven LLC and received a 5 percent interest in…

A: Solution:- Calculations If Connie receives a 5 percent capital and profits interest, how much income…

Q: Jorge owns two passive investments, Activity A and Activity B. He plans to sell Activity A in the…

A: The suspended losses of activity B would be adjusted from the Sale of activity A in calculation of…

Q: In 200A, Mr. Rosario acquired his principal residence for P6,000,000. He sold it to Mr. Dela Cruz…

A: Taxable Income:- It is the income on which one pays tax as per rate prescribed by the taxation…

Q: Rafael sold an asset to Jamal. What is Rafael's amount realized on the sale in each of the following…

A:

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Adjusted basis - $86,000 Fair Market Value - $300,000

Q: In year 0, Patrice purchased a machine to use in its business for $112,000. In year 3, Patrice sold…

A: Cost of machine= $112,000 Depreciation = $64,000 Book value of machine at Year 3 = $112,000 –…

Q: How much gain should be reported for tax purposes?

A: Meaning : The profit which arrives from the sale of Capital Assets is known a Capital Gains. The…

Q: Ted, a sole proprietor, sells his office building to Sam. He originally purchased the building for…

A: Lets understand how to calculate the gain or loss on sales or asset. We first needs to calculate the…

Q: Steve owns real estate (adjusted basis of $12,000 and fair market value of $15,000), which he uses…

A:

Q: Sergio operates a sole proprietorship. He has a home office that functions as his principal place of…

A: In order to qualify for a home office deduction, the taxpayer must use his/her home or a part of it…

Q: Moran owns a building he bought during year O for $227,00O. He sold the building in year 6. During…

A: The question is based on the concept of Financial Accounting.

Q: Dudley Morgan gives Barbara Norman property worth $325,000. Dudley's basis in the property is…

A: Barbara Norman purchased the property for $ 325000 and sells the property for $ 375000. So Profit =…

Q: Oscar sells land (AB $100,000) to his son, Rob, for its FMV of $73,000. Which of the following…

A: Recognized Gain/Loss=Sale value-Cost of asset

Q: Sarah exchanges a building and land (used in her business) for Tyler's land and building and some…

A: Effect in the books of Sarah

Q: John Travis owns a depreciable property with a FMV of $295,000. Its capital cost is $350,000 , the…

A: Depreciable property means the capital tangible fixed asset which is accounted in books of accounts…

Q: Anton agrees to pay P24,500 for 35% of Amy's interest, but the assets must first be revalued, in the…

A: Admission of partner-By Purchase  Total capital of the  existing partners remain same in case of…

Q: Nathaniel has AGI (before any rental loss) of $65,000. He also owns several rental properties in…

A: ANSWER   Alternative minimum tax and Passive Income/loss & At-risk amount AMT is applicable to…

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Adjusted basis for triplex ( in the hands of Carl) $279,000 Fair Market Value -…

Q: A tax payer is treating real property used solely for business purposes for new real property to be…

A: The question is related to taxation. The details are given regardong the same as under Real Property…

Q: Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During…

A: Gain on Sale of Asset:  When an asset is sold for more than its carrying value, a gain on the sale…

Q: Adam transfers property with an adjusted basis of $50,000 (fair market value of $400,000) to Swift…

A: Gain recognized=Liability-Adjusted basis=$60,000-$50,000=$10,000

Q: Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During…

A: The question is based on the concept of Financial Accounting.

Q: Lily exchanges land used in her business for a different parcel of land to be used in her business.…

A: Ans. Whenever any asset is exchanged for another asset, the fair market value of the asset foregone…

Q: Yancy's personal residence is condemned as part of an urban renewal project. His adjusted basis for…

A: Part a: Realized Loss=Adjusted basis-proceeds=$572,600-$543,970=$28,630 Yancy's realized loss is…

Q: On May 15, 2019, Diane received a gift of 100 shares of stock from Fred. Fred had acquired the stock…

A: As per our protocol we provide solution to the one question only but you have provided multiple…

Q: Bob owned a duplex used as rental property.  The duplex had an adjusted basis to Bob of $86,000 and…

A: Given information:   Adjusted basis - $86,000 Fair Market Value - $300,000

Q: During the current year, Daniel James exchanges land used in his business for a new parcel of land.…

A: As, the land is being exchanged for land, so it will be considered as a like-kind exchange. Whenever…

Q: Which of the following is true with respect to the related party rules? a.A disallowed loss on a…

A: A .In case of related party a loss arises due to related party transaction can be set off against…

Q: Camilo's property, with an adjusted basis of $304,000, is condemned by the state. Camilo receives…

A: Step 1: Compute Camilo's realized gain: Step 2: Compute Camilo's recognized gain: Camilo's…

Q: T bought an antique desk and chair from her employer for $50 in Year 1 when the firm bought all new…

A: Option d is correct.  Profit can only be realised if the asset is sold. The amount and nature of…

Q: As part of a transaction that qualifies for section 351 Charles contributes a building with a Fair…

A: Section 351:   Under this section of IRS, the gain or loss is not recognized when the asset is…

Q: a) Arijit sold a piece of land for $ 110,000 cash. Arijit originally purchased the land for 68,000…

A: Gain or (loss) = selling price  - purchase price

Q: Mr. F sold his principal residence which he acquired for P1,000,000 for P3,000,000. At the time of…

A: Capital gain tax (CGT) refers to the profit which is made by individual from selling the capital…

Q: Jocelyn contributes land with a basis of $39,500 and fair market value of $59,250 and inventory with…

A: The question is based on the concept of business accounting.

Q: What is Barbara's recognized gain or loss in the current year related to this exchange?

A: Given facts:  Fair value of old property = $330,000  Adjusted basis of old property = $275000  Fair…

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.