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AURORKA [14]
3 years ago
9

Paula inherits a home on July 1, 2019 that had a basis in the hands of the decedent at death of $290,000 and a fair market value

of $500,000 at the date of the decedent's death. Paula decides to sell her old principal residence, which she has owned and occupied for nine years, with an adjusted basis of $125,000 and move into the inherited home. On September 16, 2019, she sells the old residence for $600,000. Paula incurs selling expenses of $30,000 and legal fees of $2,000. She decides to add a pool, deck, pool house, and recreation room to the inherited home at a cost of $100,000. These additions are completed and paid for on November 1, 2019. What is her recognized gain on the sale of her old principal residence and her basis in the inherited home?
Business
1 answer:
Airida [17]3 years ago
4 0

Answer:

her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

Explanation:

Recognized gain on sale of old house

= ($600,000 - $125000) - $30,000 - $2000

= $443,000

Paula's recognized gain = $443,000 - $250,000

                                         = $193,000

Her basis in the inherited home = $500,000 + $100,000

                                                      = $600,000

Therefore, her recognized gain on the sale of her old principal residence is $193,000 and her basis in the inherited home is $600,000.

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rewona [7]

Answer:

Middleton University

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Total Instruction cost   $57,600

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Explanation:

a) Data and Calculations

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b) The activities are three for each of introductory and graduate courses.  The cost (annual salary) of the professor is allocated according to the time spent on each activity.  This cost is further allocated between the introductory and graduate classes according to the number of students in each course.  Overall, the same amount per each activity is spent on each student in both courses.

7 0
3 years ago
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The jou
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As such, the journal entry will be a debit to factory payroll payable $160,000 and a credit to cash $160,000. This means cash will reduce by $160,000 as the factory workers are paid while payables which is a provision account will reduce as well on the cash book by the same amount.

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3 years ago
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4 0
3 years ago
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