Accounting 444

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  • Topic: Exchange
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  • Published : December 16, 2012
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Acc 444
5-2
Ellen’s basis is $60,000. (12,000 that she paid in cash, and 48,000 purchase money liability). 5-33
(250,000-75,000-94,000-50,000)= $31,000 loss
12-1
False – like kind exchanges don’t liquidate property.
12-2
A taxpayer might want to avoid having an exchange qualify as like-kind, if they prefer to recognize a loss on an exchange, because they would receive a tax benefit. 12-28
85,000-20,000= 65,000 realized
Boot=$0, therefore $0 recognized
Adjusted Basis= 20,000-0+0= 20,000

84,000-45,000= 39,000 realized
Boot=14,000 therefore $14,000 recognized
Adj Basis= 45,000-14,000+14,000= 45,000

90,000-60,000= 30,000 realized
Boot= 25,000 therefore 25,000 recognized
Adj basis is 60,000-25,000+25,000= 60,000

98,000-70,000= 28,000
Boot= 38,000 therefore 28,000 recognized
Adj Basis is 70,000-38,000+28,000= 60,000
12-28 cont
77,000-90,000 = (13,000) realized
Boot is 22,000 therefore $0 recognized
Adj Basis is 90,000-22,000+0 = 68,000

12-32
a.950,000 – (340,000 +200,000) = 410,000 realized
b.Boot $0, so $0 recognized
c.Adj Basis = 540,000-0+0 = 540,000

12-35
Amount realized= 115,000
Boot is 25,000 therefore amt recognized is 25,000
Adj Basis is 60,000-25,000+25,000 = 60,000

13-33
Case A – LTCG of 19,000
Case B- LTCL of 22,000
Case C- LTCG of 6,300
Case D- LTCL of 4,2000
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