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DaniilM [7]
3 years ago
7

If a taxpayer sells property for cash, the amount realized consists of the net proceeds from the sale. For each of the following

, indicate the effect on the amount realized if:
a. The property is sold on credit. The amount realized includes both the cash received at the time of sale and the cash to be received in the future .
b. A mortgage on the property is assumed by the buyer. The assumption by the buyer of the seller's mortgage the amount realized by_______ .
c. A mortgage on the property of the buyer is assumed by the seller. The assumption by the seller of the buyer's mortgage the amount realized by______ .
d. The buyer acquires the property subject to a mortgage of the seller. The buyer's acquisition of the property subject to the mortgage of the seller the amount realized by_______ .
e. Stock that has a basis to the purchaser of $6,000 and a fair market value of $10,000 is received by the seller as part of the consideration. The receipt of the stock by the seller the amount realized by the seller by_________
Business
1 answer:
PilotLPTM [1.2K]3 years ago
3 0

Answer:

a. Is answered

b. The amount realized increases.

As the mortgage is assumed by the buyer, the seller is now free of the debt in addition to making cash from selling. Realized value therefore increases.

c. The amount realized decreases.

As the mortgage is assumed by the seller, they will have to pay off the mortgage from the cash received therefore their realized value decreases.

d. Amount realized increases.

As the buyer is gets the property subject to the mortgage, they will be the ones making the mortgage payments instead of the seller so the seller's realized value will increase.

e. Realized value increases to $10,000.

The seller accepted the stock so the fair value will be the amount considered for the realized value.

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At the time of his death on July 9, Aiden held rights in the following real estate: Fair Market Value (on July 9) Apartment buil
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Answer:

The answer is \$1,200,000"".

Explanation:

\to [\$500,000 (\frac{1}{3} \times \$1,500,000) + \$250,000 (\frac{1}[3}  \times \$750,000 + \$450,000 (\frac{1}[2}  \times \$900,000]\\\\\\to \$1,200,000

Though this tree farm is jointly held, Aiden is assumed to have given 1/3 of the treatment because his mother gave her a gift to create the lease. The tenancy of the major chunk is subjected to the fifty percent spouse exclusion rule. None of the structures is included as Chloe does not escape Aiden.

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2 years ago
All standalone pdp formularies have a ___-tier structure for 2022.
Mekhanik [1.2K]

All standalone PDP formularies have a Five-tier structure for 2022.

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4 0
3 years ago
Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Ja
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Answer:

Variable cost per unit= $1.5

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Giving the following information:

Miles Driven Total Cost

January 10,000 $17,000

February 8,000 13,500

March 9,000 14,400

April 7,000 12,500

<u>To calculate the variable and fixed costs under the high-low method, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

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Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 12,500 - (1.5*7,000)

Fixed costs= $2,000

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3 years ago
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