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tresset_1 [31]
3 years ago
7

Moss exchanges a warehouse for a building he will use as an office building. The adjusted basis of the warehouse is $600,000 and

the fair market value of the office building is $350,000. In addition, Moss receives cash of $150,000. What is the recognized gain or loss and the basis of the office building?
Business
1 answer:
Radda [10]3 years ago
6 0

Answer:

$0 and $450,000.

Explanation:

Calculation for What is the recognized gain or loss and the basis of the office building

Calculation for the recognized gain or loss

Using this formula

Recognized gain or loss =Amount realized -(Adjusted basis-Realized loss)

Let plug in the formula

Recognized gain or loss= ($350,000 + $150,000) -( $600,000-$100,000)

Recognized loss =($500,000-$500,000)

Recognized loss =$0

Therefore the Recognized loss  will be $0

Calculation for the basis of the office building

Using this formula

Basis of the office building=FMV+Postponed loss

Let plug in the formula

Basis of the office building= $350,000+$100,000

Basis of the office building= $450,000

Therefore the Basis of the office building will be $450,000

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Answer:

The correct answer is Option B.

Explanation:

The full disclosure principle is a concept that requires all necessary details relating to the notes to the financial statements are provided and explained in such a way that would be understandable to the users of the financial statements.

The disclosures are expected to be in compliance with the accounting standards, regulatory pronouncements, among others.

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3 years ago
Nataro, Incorporated, has sales of $742,000, costs of $316,000, depreciation expense of $39,000, interest expense of $34,000, an
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Based on the information given the net income is $278,870.

<h3>Net income </h3>

Sales $742,000

Less Costs ($316,000)

Les Depreciation ($39,000)

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Taxes (21%) $74,130

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($353,000-$74,130)

Inconclusion the net income is $278,870.

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3 0
2 years ago
Service Revenue for the year = $80,000. Of this amount, $70,000 is collected during the year and $10,000 is expected to be colle
galina1969 [7]

Answer:

Net Cash Inflow from Operating Activities = $16,000

Explanation:

In the given information, it is not provided that cash is paid or not for Supplies, thus, assumed it was paid at the time of acquisition, and not in the current period when it is only charge to expense.

In that case, Cash generated from operating activities using direct method, shall be:

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6 0
3 years ago
In project time management, which of the following processes involve calculating the number of work periods that are needed to c
11Alexandr11 [23.1K]

Answer:

The correct answer is C

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The estimate activity duration is a procedure in project management which include the analyzing of the different activities and then estimates or approximate how long it takes for accomplishing or completing the specific task with the estimated resources.

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4 0
3 years ago
Esmeralda promises to pay fiorello $400 because ""he does not have as much money as other people. "" esmeralda’s promise is not
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Esmeralda's promise is not enforceable because society does not want gifts cheapened by making them legally enforceable because society does not want gifts cheapened by making them legally enforceable.

A legally enforceable contract means that you can keep the promise of the other party. If the other party fails or refuses to meet its obligations, the contract can be fulfilled in accordance with the law.

A non-enforceable contract or transaction is valid but not enforced by the court. Unenforceable is typically used in conflict with void (or void ab initio) and voidable. If the parties implement the agreement, it is valid, otherwise, the court will not enforce them.

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8 0
2 years ago
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