Joan sold depreciable property used in her business to Irene for $325,000 cash plus a ten year bond par value $200,000, and currently trading on the NYSE for $196,000. The property cost Joan $605,000 not including the $27,000 of capital improvements she made. During Joan’s ownership she erroneously deducted $315,000 of depreciation on the property and no depreciation on the improvements. The correct amount of depreciation that should have been deducted was $420,000 on the property and $12,000 on the improvements Determine the amount of recognized gain or loss.

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: Lassen Corporation sold a machine to a machine dealer for $20,000. Lassen bought the machine for…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

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: Franco converted a building from personal to business use in May 2018 when the fair market value was…

A: Solution:- Given, Franco converted a building from personal to business use in May 2018  The fair…

Q: Laurel contributed equipment worth $225,000, purchased 6 months ago for $247,000 cash and used in…

A: Limited-liability Corporation (LLC): The form of business entity which is unincorporated, but…

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: Taxpayer owns a building that she uses in her business. Taxpayer purchased the building several…

A: 1. Depreciation Recapture: When assets is sold, the profit up to Depreciation claimed is treated is…

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: Hi, please help me with this question.   Several years ago, Minjun, who is single, acquired § 1244…

A: Gains: Gains are the profits earned from non-operating activities of a business like sale of land,…

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

A: To extent of depreciation will be treated as section 1250 Unrecaptured gain.  Balance gain is…

Q: Tolbert sold property to her solely owned corporation. The property had a basis to Tolbert of…

A: The Correct Answer for the question on confirming true statement /statements and explanation are…

Q: Kase, an individual, purchased some property in Potomac, Maryland, for $150,000 approximately 10…

A: In the United States, a like-kind exchange, also known as a 1031 exchange, is a transaction or…

Q: Laurel contributed equipment worth $225,000, purchased 6 months ago for $247,000 cash and used in…

A: In the given situation, Laurel contributed equipment worth $225,000, purchased 6 months ago for…

Q: Several years ago, Minjun, who is single, acquired § 1244 stock in Blue Corporation at a cost of…

A: Capital loss: When the value of a capital asset, such as an investment or real estate, declines, a…

Q: January Smith purchased a printing press for $60,000 and claimed CA over time. Her opening UCC…

A: Smith has purchased a printing press for $60,000, and his undepreciated capital cost (UCC) balance…

Q: Tolbert sold property to her solely owned corporation. The property had a basis to Tolbert of…

A: The gain or loss is said to be recognized when the assets are sold at the time of sale of assets.

Q: Moran owns a building he bought during year 0 for $237,000. He sold the building in year 6. During…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: Sam Shoeman, a calendar year taxpayer, purchased stock in Eaton Corporation on July 12, 2020, for…

A: A short-term loss is a shortfall acknowledged from the sale of individual or venture property that…

Q: What is Reva's basis in the repossessed property

A: Given: Sold amount of principle residence = $ 15000 Basis adjusted = $ 110000 Balance of note = $…

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: Buckley, an individual, began business two years ago and has never sold a $1231 asset. Buckley has…

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

Q: Tina disposed of a painting on 1 July 2020 for $500,000 which she had bought in February 2008  for…

A: Capital Gains are gains arising from sale asset when proceeds from such sale are compared with the…

Q: Barry sold depreciable property used in his business to Ken for $192,000 cash plus a bond redeemable…

A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…

Q: an ind

A: An income(sum of all total income) that can be received by a person in a full year is termed gross…

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: Kase, an individual, purchased some property in Potomac, Maryland, for $228,000 approximately 10…

A: Unrealized gains and losses: These are gains and losses which are unrealized and are the result of…

Q: Leonard London sold a building used in his business to Michelle Martinson. He had purchased the…

A: The following calculations are done in the records of Leonard London to evaluate the gain on sale of…

Q: Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its fair…

A: Introduction:Recognized Gain/Loss: It is difference between the cost price of the asset less its…

Q: Buckley, an individual, began business two years ago and has never sold a §1231 asset. Buckley has…

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

Q: 1. George, a cash basis taxpayer, sells equipment for $200,000. The equipment originally cost…

A: A) Particulars  Amount ($) Sales price of equipment   200000 Less: book value as on the date…

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

A: There is no gain or loss as the fair market value of both duplex and triplex.

Q: Verlin sells a commercial building and receives $50,000 in cash and a note for $60,000 at 10 percent…

A: a) Total taxable gain on the property to be recognized in the year of sale would be $65,000 (i.e.…

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: Tina is tax resident in Country A. She acquired the following assets in 2017: (a) two houses…

A: SOLUTION CAPITAL ASSETS = TWO HOUSES OF COUNTRY A + TWO HOUSES OF COUNTRY B + MOTOR VEHICLE +…

Q: Bobert transfers a rental office building (current fair market value of $45,000) that he purchased…

A: Bobert transfers a rental office building which is purchased 20 years ago Current fair value =…

Q: Jessica sold goods to Stacy for $2,500 and retained a security interest in them. Two months later,…

A: Answer a: Except where the interest is voidable by the creditor who secured a judicial lien on the…

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: What is correct?

A: Given information is: Auntie sold some stock she purchased several years ago for $10,000 to Niece…

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: 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: Ms. Virginia Habangbuhay, decedent, owned a property valued at P3,000,000 at the time of her death.…

A:

Q: Helen sold her principal residence with a fair market value of P6,000,000 for P5,000,000. Helen…

A: Capital gain: Gain arising out of sale of any capital asset held by the tax payer is known as…

Q: Heather owns a two-story building. The building is used 40% for business use and 60% for personal…

A: Gain or loss on insured assets:- Generally, businesses take insurance against their fixed assets…

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: Peter Diamond owed Carter $500,000 secured by a first mortgage on Diamond’s plant and land. Stephens…

A: As per the case  the property was fore closed and sold for$375,000 . from the amount  , the…

Q: Alan Meer inherits a hotel from his grandmother, Mary, on February 11 of the current year. Mary…

A: Given that Fair market value of hotel = $725000

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…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.