PRINCIPLES OF TAXATION F/BUS...(LL)
23rd Edition
ISBN: 9781260433197
Author: Jones
Publisher: MCG
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Chapter 9, Problem 7QPD
To determine
Identify whether Company W recognize any gain on the exchange.
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Students have asked these similar questions
Misha Corp. exchanged Land A for
Land B. Misha originally purchased
Land A for $150,000 and Land A's fair
value was $165,000 at the time of the
exchange. Misha gave Land A and
$12,000 in cash in exchange for Land
B, which had a fair market value of
$177,000 at the time of the exchange.
Assume the exchange qualifies as a
like-kind exchange.
1. What is Misha's recognized gain/loss
on the exchange?
A. $12000 gain B. $0 gain C. $27000
D. $15000
2. What is Misha's basis in Land B?
A. $150000 B. $177000 C. $162000
Prater Incorporated enters into an exchange in which it gives up its warehouse on 10 acres of land and receives a tract of
land. A summary of the exchange is as follows: What are Prater's realized and recognized gain on the exchange and its
basis in the assets it received in the exchange? Answer is complete but not entirely correct.
Prater Incorporated enters into an exchange in which it gives up its warehouse on
10 acres of land and receives a tract of land. A summary of the exchange is as
follows:
Transferred
Warehouse
Land
Mortgage on warehouse
Cash
Assets Received
Land
FMV
$ 432,500
Original
Basis
Accumulated
Depreciation
$ 278,000
$ 55,500
55,000
55,000
63,750
21,000
21,000
FMV
$ 444,750
What are Prater's realized and recognized gain on the exchange and its basis in the
assets it received in the exchange?
Answer is complete but not entirely correct.
Description
Realized gain
Amount
$
167,250
Recognized gain
$
84,750 x
Adjusted basis in new property
$ 278,000
Abbott exchanges land in a transaction that lacks commercial substance. The net book value of the land exchanged is $50,000. In exchange Abbott receives land with a fair value of $60,000 and $20,000 in cash. What is the gain that Abbott should recognize?
Chapter 9 Solutions
PRINCIPLES OF TAXATION F/BUS...(LL)
Ch. 9 - Prob. 1QPDCh. 9 - Prob. 2QPDCh. 9 - Prob. 3QPDCh. 9 - Prob. 4QPDCh. 9 - Prob. 5QPDCh. 9 - Prob. 6QPDCh. 9 - Prob. 7QPDCh. 9 - Prob. 8QPDCh. 9 - Prob. 9QPDCh. 9 - Explain the difference between a substituted basis...
Ch. 9 - Prob. 11QPDCh. 9 - Prob. 12QPDCh. 9 - Prob. 13QPDCh. 9 - Prob. 14QPDCh. 9 - Prob. 15QPDCh. 9 - Prob. 1APCh. 9 - Prob. 2APCh. 9 - Prob. 3APCh. 9 - Prob. 4APCh. 9 - Prob. 5APCh. 9 - Prob. 6APCh. 9 - This year, Neil Inc. exchanged a business asset...Ch. 9 - Prob. 8APCh. 9 - Prob. 9APCh. 9 - XYZ exchanged an old building for a new like-kind...Ch. 9 - Prob. 11APCh. 9 - Prob. 12APCh. 9 - Prob. 13APCh. 9 - Prob. 14APCh. 9 - Prob. 15APCh. 9 - Prob. 16APCh. 9 - Prob. 17APCh. 9 - Prob. 18APCh. 9 - Prob. 19APCh. 9 - On October 18 of last year, a flood washed away...Ch. 9 - Prob. 21APCh. 9 - Prob. 22APCh. 9 - Prob. 23APCh. 9 - Mr. ZJ owns a sole proprietorship. The business...Ch. 9 - Prob. 25APCh. 9 - Prob. 26APCh. 9 - Prob. 27APCh. 9 - Prob. 28APCh. 9 - Prob. 29APCh. 9 - Prob. 30APCh. 9 - Prob. 31APCh. 9 - Prob. 32APCh. 9 - Prob. 33APCh. 9 - Prob. 34APCh. 9 - Prob. 1IRPCh. 9 - Prob. 2IRPCh. 9 - Prob. 3IRPCh. 9 - Prob. 4IRPCh. 9 - Prob. 5IRPCh. 9 - Prob. 6IRPCh. 9 - Prob. 7IRPCh. 9 - Prob. 8IRPCh. 9 - Prob. 9IRPCh. 9 - Prob. 10IRPCh. 9 - Prob. 1RPCh. 9 - Prob. 2RPCh. 9 - Prob. 3RPCh. 9 - Prob. 1TPCCh. 9 - Prob. 2TPCCh. 9 - Prob. 3TPCCh. 9 - Croyden is a calendar year, accrual basis...
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