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IRISSAK [1]
3 years ago
12

Shontelle owns an apartment house that has an adjusted basis of $760,000 but is subject to a mortgage of $192,000. She transfers

the apartment house to Dave and receives from him $120,000 in cash and an office building with a fair market value of $780,000 at the time of the exchange. Dave assumes the $192,000 mortgage on the apartment house. What is Shontelle’s realized gain or loss?
Business
1 answer:
emmainna [20.7K]3 years ago
3 0

Answer:

Realized gain of Shontelle = $332000

Explanation:

given data

adjusted basis = $760,000

mortgage = $192,000

receives cash = $120,000

fair market value = $780,000

to find out

What is Shontelle realized gain or loss

solution

we find here first Realized gain that is express as

Realized gain = Amount realized - Adjusted basis     ..................1

so here Amount realized = (receives cash  + fair market value + mortgage)

Amount realized = (120000 + 780000 + 192000)

Amount realized = 1092000

so from equation 1

Realized gain = Amount realized - Adjusted basis  

Realized gain = 1092000 - 760000

Realized gain =  $332000

so we can say that

Realized gain of Shontelle = $332000

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$51,164

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7 0
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giannis corporation purchases debt investments as trading securities at a cost of $150,000 on december 1. this is its first and
trasher [3.6K]

In a condition given above where the Giannis Corporation sells a proportion of its trading securities, costing $9,000, for an amount of $10,000, the journal entry of the transaction would include a gain of $1,000. Therefore, the option C holds true.

<h3>What is the significance of gains?</h3>

The gains of a business organization can be referred to or considered as the surpluses earned by a company from the extraordinary and indirect operations, which are unrelated to its normal business activities. Any such gains are recorded under ''Other Revenues'' Accounts of the firm.

Therefore, the option C holds true and states regarding the significance of gains.

Learn more about gains here:

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The question seems to be incomplete. It has been added below.

Giannis corporation purchases debt investments as trading securities at a cost of $150,000 on December 1. This is its first and only purchase of such securities. On January 5, Giannis corporation decides to sell a portion of its trading securities (costing $9,000) for $10,000 cash. The journal entry to record this sale would include a:

A. Loss of $10,000

B. Gain of $10,000

C. Gain of $1,000

D. Gain of $9,000

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