1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MakcuM [25]
3 years ago
14

Baker traded a building used in her business for some new land. Baker originally purchased the building for $50,000 and it had a

n adjusted basis of $30,000 at the time of the exchange. The new land had a fair market value of $35,000. Baker also paid $5,000 to the dealer in the transaction. What is Baker's adjusted basis in the land after the exchange?
Business
1 answer:
Fittoniya [83]3 years ago
8 0

Answer:

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

Explanation:

<em>Step 1: Determine the initial loss/gain in value of the building</em>

initial loss/gain=original purchase price-adjusted basis

where;

original purchase price=$50,000

adjusted basis=$30,000

replacing;

initial loss/gain=50,000-30,000=$20,000

initial loss in value=-$20,000

<em>Step 2: Determine the loss or gain from the exchange</em>

loss/gain=35,000-30,000=$15,000

gain=$15,000

Step 3: Determine other additional costs

Costs=loss=-$5,000

<em>Step 4: Determine the net gain/loss</em>

net gain/loss=-20,000+(15,000)+(-5,000)=-$10,000

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

You might be interested in
The method of slicing digital messages into parcels, transmitting them along different communication paths, and reassembling the
Nana76 [90]
Is called packet switching 
5 0
3 years ago
Consider a stock priced at $30 with a standard deviation of 0.3. The risk-free rate is 0.05. There are put and call options avai
Elza [17]

Answer:

-$11

Explanation:

Covered Call involves Buy stocks and Sell call options

Earning $2.89 by selling call. So, at  stock price of $27, the payoff from options is $2.89 per option

Options Profits = $2.89 * 100

Options Profits = $289

Profit of stock = ($27 - $30) * 100

Profit of stock = -$300

Investor Net Profit = Profit of stock + Options Profits

Investor Net Profit = -$300 + $289

Investor Net Profit = -$11

6 0
3 years ago
Louise has been a child care provider for one year. She works out of her home and cares for five children. She completed a train
Lerok [7]

Answer: D

Explanation:

6 0
3 years ago
if aggregate demand is growing faster than long run aggregate supply, the federal reserve is most likely to
Musya8 [376]

Answer:

.sell securities on the open market

Explanation:

Aggregate demand is simply a schedule or a curve. It said to shows the total quantity of goods and services demanded (purchased) at various price level.

Aggregate demand-aggregate supply (AD-AS) model is macroeconomic model that uses aggregate demand and aggregate supply to determine and explain the price level and the real domestic output.

5 0
3 years ago
Hal Gore won a $1 million prize for special contributions to environmental research. This prize is awarded for public achievemen
Vikki [24]
I think the answer is A
7 0
3 years ago
Other questions:
  • The accumulation of budget deficits by the United States has created
    12·1 answer
  • Runaround corporation sells running shoes and during january they ran production machines for​ 20,000 hours total and incurred​
    6·1 answer
  • Glacial Company estimates that variable costs will be 53.1% of sales, and fixed costs will total $710,000. The selling price of
    6·1 answer
  • The nation itself with all its so called internal improvements meaning
    8·1 answer
  • Saturn Systems Inc., which is headquartered in the United States, has its production plant located in a less-developed country w
    15·1 answer
  • Help asap
    6·2 answers
  • Ferkil Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $65,000 per
    10·1 answer
  • You have just been offered a promotion that your friend and coworker, Crystal, has been hoping for. Crystal knows that you had a
    15·1 answer
  • Bond interest is deducted from:
    13·1 answer
  • ray and gina own shares of stock in a number of different companies. none of their holdings are very large. because they make th
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!