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TiliK225 [7]
2 years ago
8

Mark exchanged an office building that he owned for over ten years for vacant land used by Sandy in her farming business. The of

fice building had a FMV of $3,150,000, which Mark purchased in 2010 for $1,725,000. Mark deducted $325,000 of depreciation, but because of an error, the amount of depreciation he should have taken was $480,000. Also, Mark received a $350,000 insurance reimbursement for damage to the office building, which he used to acquired equipment for his business. The office building had a $700,000 mortgage liability, which Sandy agreed to assume. The land had a FMV of $2,000,000 and cost Sandy of $1,825,000 excluding the cost improving the land with a parking lot, which cost Sandy an additional $110,000. Sandy took $40,000 of depreciation deductions on the parking lot. Additionally, Sandy also gave Mark cash of $100,000 and equipment valued at $350,000 with an adjusted basis of $300,000. Calculate Mark's basis in the vacant land after the transaction. How much gain or loss did Mark defer? Explain your answer including ALL components in the calculation of you answer. What rule did you rely on in determining your answer? Show all calculations Determine Sandy's recognize gain or loss. Also, what is her basis in the building after the transaction? Explain your answer and show all calculation.
Business
1 answer:
hram777 [196]2 years ago
3 0

Answer:

h

Explanation:

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The cost when someone borrows money from someone else is known as interest.

<h3>What is interest?</h3>

Interest rate is the cost of borrowing. It is the amount the borrower pays the lender for use of their funds. It is usually a function of the amount borrowed, length of the loan and the interest rate.

For example, if a person borrows $1000 for 1 year at an interest rate of 10, the interest that would be paid is: $1000 x 0.1 = $100.

To learn more about interest rate, please check: brainly.com/question/14935026

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2 years ago
What factors will determine the sizes of the​ shortages? The extent of the excess demand implied by the shortages will depend on
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Answer:

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When the demand for a product is completely inelastic it means that the quantity demanded for that product will be the same whether its price increases or decreases. Rarely any product is completely inelastic, but inelasticity shows a tendency of buyers to keep buying a product even if its price rises, for example gasoline.

Inelastic products don´t follow the law of supply and demand, since the price doesn´t alter the demand.

If suppliers can produce enough goods (product shortages) and the quantity demanded stays the same, the price will rise. But if the demand for the product is inelastic then the shortage will get worse since every time more people will want to buy the product and their will be less product to buy.

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3 years ago
Brief Exercise 12-05 Nabb &amp; Fry Co. reports net income of $31,000. Interest allowances are Nabb $7,000 and Fry $5,000, salar
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Answer:

The calculation is shown below:

Explanation:

The distribution of income is shown below:

Particulars           Nate Frank Total

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Total                        $22,000  $15,000  $37,000

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3 years ago
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Answer:

1. Based on her years of experience, Joan Johnson can answer the question by detailing the advantages and disadvantages of incorporating in each state for the client.

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A firm's clients usually require immediate clarifications whenever they ask their questions.  Therefore, an effective and efficient firm should ensure that its paralegal officers are well-trained and well-informed to handle initial client enquiries while the details are referred to their supervisors.

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