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grin007 [14]
4 years ago
15

Pam exchanges a rental building, which has an adjusted basis of $520,000, for investment land which has a fair market value of $

700,000. In addition, Pam receives $100,000 in cash. What is the recognized gain or loss and the basis of the investment land? a. $0 and $420,000. b. $100,000 and $420,000.
c. $100,000 and $520,000.
d. $280,000 and $700,000.
e. None of the above.
Business
1 answer:
V125BC [204]4 years ago
5 0

Answer:

Option (d) is correct.

Explanation:

Given that,

Fair market value = 700,000

Cash received = 100,000

Adjusted basis = 520,000

Recognized gain:

= Value received - Adjusted basis

= [Fair market value + Cash received] -  Adjusted basis

= [700,000 + 100,000] - 520,000

= $280,000 Gain

The basis of investment land is equal to the fair market value of the investment land.

Basis investment land = $700,000

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Explanation:

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3 years ago
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina
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Answer:

The estimated inventory at the end of February is $73400 as shown below

Explanation:

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8 0
3 years ago
You estimate you'll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement. Today
Rudiy27

Answer:

$66,909

Explanation:

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First step is to calculate the PV using financial y

N= 25

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i/y= 9

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Hence,

PV= 2,141,322

Now let How much must each deposit be by finding the PMT using financial calculator

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4 0
3 years ago
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Answer:

B) demographic

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7 0
3 years ago
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