A. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Assuming that the land acquired in (A) was sold for $2,125,000, how would the various elements of the accounting equation be affected?

A. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Assuming that the land acquired in (A) was sold for $2,125,000, how would the various elements of the accounting equation be affected?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 3DQ

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a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. b. Assuming that the land acquired in (a) was sold for $2;125,000, how would the various elements of the accounting equation be affected? Answer sub-part b alone.
a. Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased?b. Assuming that the land acquired in (a) was sold for $2,125,000, how would the various elements of the accounting equation be affected?
a) Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business recieves an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased? b) Assuming that the land acquired in (a) was sold for $2,125,00, how would the various elements of the accounting equation be affected?
if a company is considering the purchase of a parcel of land that was acquired by the seller for $89,000 is offered for sale at 158,000 is assessed for tax purposes at 99,000 is considered by the purchaser as easily being worth 148,000 and is purchased for 145,000 the land should be recored in the purchaser books at (A. 99,000, B. 145,000, C. 146,500, D. 148,000, E. 158,000)
Land with an assessed value of $750,000 for property tax purposes is acquired by a business for $900,000. Ten years later, the plot of land has an assessed value of $1,200,000 and the business receives an offer of $2,000,000 for it. Should the monetary amount assigned to the land in the business records now be increased?
1 Suppose the taxpayer received $35,000 in cash, a ring worth $3,000 and the buyer assumed the seller's note. a. What is the amount realized? b. What is the adjusted basis of the property? c. What is the gain on the sale of the property?
Is a deduction allowed under the MACRS rules for depreciable real estate (used in a business or held for investment) in the year the property is sold? If so, explain how it is calculated. O A. Yes, a deduction is allowed under the MACRS rules for depreciable real estate in the year the property is sold. It is assumed that the asset is held for the entire year. The amount of depreciation is computed by taking 100% of the annual depreciation. O B. No, there is no deduction allowed under the MACRS rules for depreciable real estate in the year the property is sold. O C. O D. Yes, a is deduction allowed under the MACRS rules for depreciable real estate in the year the property is sold. It is assumed that the asset is held for half the year. The amount of depreciation is computed by taking 6/12's of the annual depreciation. Yes, depreciation for real estate is computed using tables that follow the mid-month convention, so depreciation is allowed in the year of sale. The amount of…
Compute the following. 1. Total gain. 2. Contract price. 3. Payments received in the year of sale. 4. Recognized gain in the year of sale and the character of such gain. а. (Hint: Think carefully about the manner in which the property taxes are han- dled before you begin your computations.) b. Same as parts (a)(2) and (3), except that Kay's basis in the property was $35,000.
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Russell Corporation sold a parcel of land valued at $425,000. Its basis in the land was $297,500. For the land, Russell received $101,250 in cash in year 0 and a note providing that Russell will receive $226,000 in year 1 and $97,750 in year 2 from the buyer. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. What is Russell's realized gain on the transaction? b. What is Russell's recognized gain in year 0, year 1, and year 2?
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Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received $50,000 in cash in yar 0 and a note providing that Russell will receive $175,000 in year 1 and $175,000 in yar 2 from the buyer. What is Russell’s realized gain on the transaction? What is Russell’s realized gain in year 0, year 1, and year 2?