Principles of Taxation for Business and Investment Planning 2020 Edition
Principles of Taxation for Business and Investment Planning 2020 Edition
23rd Edition
ISBN: 9781260433210
Author: Jones, Sally
Publisher: MCGRAW-HILL HIGHER EDUCATION
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Book Icon
Chapter 9, Problem 10AP

XYZ exchanged an old building for a new like-kind building. XYZ’s adjusted basis in the old building was $13,000 ($30,000 initial cost − $17,000 accumulated depreciation), and its FMV was $20,000. Because the new building was worth $28,500, XYZ paid $8,500 cash in addition to the old building.

  1. a. Compute XYZ’s realized gain, and determine the amount and character of any recognized gain.
  2. b. Compute XYZ’s basis in its new building.
Blurred answer
Students have asked these similar questions
TP exchanged an apartment building with an adjusted basis of $100,000 and a FMV of$175,000 for land and a small rental house. The land had a FMV of $125,000 and thehouse had a FMV of $50,000. The apartment building was 19-year real property andaccelerated depreciation of $200,000 had been taken. If straight-line depreciation hadbeen used, only $125,000 of depreciation would have been taken.Hint: Has TP received enough 1250 property to cover the 1250 taint? If not, gain mustbe recognized to the extent of the excess. a. What is the realized and recognized gain on the exchange? b. What is the character of any recognized gain?
Blackpink Company purchased land with a building on it, for P2,280,000. It was reliably determined that the building is worth twice as much as the land. Blackpink has the intention of using the old building hence, necessary remodeling at a cost of P800,000 were initiated. Also, Blackpink constructed driveways and sidewalks amounting to P204,000, fences of P100,000, and water system of P64,000. During the year, Blackpink also purchased machinery with a list price of P700,000. Freight on machinery purchased amounted to P8,000 while repairs to machinery due to damage during shipment amounted to P4,600. The manufacturer offered Blackpink 2% cash discount for the said machine, but due to cash constraint, it was not availed. 9) How much is the adjusted balance of the building? A. 1,520,000 B. 1,724,000 C. 2,320,000 D. 2,524,000 10) How much is the initial cost of the machine? A. 694,000 B. 698,600 C. 708,000 D. 712,600
Pet Supply purchased fixed assets two years ago at a cost of $43,800. It no longer needs the assets, so it is going to sell them today for $32,500. The assets are classified as five-year property for MACRS. The MACRS rates are .2, .32, .192, .1152, .1152, .0576, for years 1 to 6, respectively. What is the net cash flow from the sale if the tax rate is 35%?

Chapter 9 Solutions

Principles of Taxation for Business and Investment Planning 2020 Edition

Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Text book image
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:9780357110362
Author:Murphy
Publisher:CENGAGE L
Text book image
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY