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3 years ago

Lisa sells business property with an adjusted basis of $237,800 to her son, Alfred, for its fair market value of $190,240.

Business

1 answer:

mylen [45]3 years ago

6 0

Answer:

a. Lisa's realized and recognized gain or loss is unknown

b. Alfred's recognized gain of $71,340 if he subsequently sells the property for $261,580

Alfred's recognized loss of $35,670 if he subsequently sells the property for $154,570

Explanation:

a. We do not know the amount Lisa costed to buy this business property, thus can't define her gain or loss.

b. Alfred cost $190,240 to buy this property, the he will gain if sell higher or lost if sell lower.

The gain $71,2340 = selling price $261,580 - cost $190,240

The loss $35,670 = selling price $154,570 - cost $190,240

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Answer:

Tyson's basis in the distributed inventory = $8,000 and land = $12,000

Explanation:

Total basis value of assets received by Tyson = Cash + Inventory + Land

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For this Tyson's basis of interest in partnership = $24,000

Thus Tyson's Basis in Inventory = $8,000

Tyson's basis for Land = $12,000

Note: the basis is book value and not the market value even in case it is less than book value.

Tyson's basis in the distributed inventory = $8,000 and land = $12,000

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Answer:

both increasing

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3 years ago

At the beginning of Year 1, Mitchell Company purchased office equipment for $15,000. The machine has an estimated residual value

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Answer:

Debit the depreciation expense for $2800

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($15,000 - $1,000) / 5 = $2,800

I hope my answer helps you

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4 years ago

c. At the beginning of the year, Quaker Company's liabilities equal $41,000. During the year, assets increase by $60,000, and at

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Answer:

Beginning Equity = $89,000

Ending Equity = $156,000

Explanation:

Data provided in the question:

Beginning liabilities = $41,000

Increase in assets = $60,000

Ending assets = $190,000

Decrease in liabilities = $7,000

Now,

Beginning Assets = Ending assets - Increase in assets

= $190,000 - $60,000

= $130,000

Ending liabilities = Beginning liabilities - Decrease in liabilities

= $41,000 - $7,000

= $34,000

Also,

Assets = Equity + Liabilities

Therefore,

Beginning Assets = Beginning Equity + Beginning Liabilities

$130,000 = Beginning Equity + $41,000

Beginning Equity = $130,000 - $41,000

= $89,000

Ending Assets = Ending Equity + Ending Liabilities

$190,000 = Ending Equity + $34,000

Ending Equity = $190,000 - $34,000

= $156,000

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3 years ago

Ethan put $4000 in a 2-year CD paying 5% interest, compounded monthly. After 2 years, he withdrew all his money. What was the am

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Answer:

The total amount was $4419.76

Explanation:

The 5% of $4000 is $200 so after a 2 year period added to the amount the original deposit of $4000 then A is the correct and closest equal amount.

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3 years ago

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