Discuss identical parcels of land over several-year period

Assignment Help Accounting Basics

Reference no: EM132450853

Point 1. Bala and Ann purchased as investments three identical parcels of land over a several-year period. Two years ago, they gave one parcel to their daughter, Kim, who is now age 16. They have an offer from an investor who is interested in acquiring all three parcels. The buyer is able to purchase only two of the parcels now but wants to purchase the third parcel two or three years from now, when he expects to have available funds to acquire the property. Because they paid different prices for the parcels, the sales will result in different amounts of gains and losses. The sale of one parcel owned by Bala and Ann will result in a $20,000 gain and the sale of the other parcel will result in a $28,000 loss. The sale of the parcel owned by Kim will result in a $19,000 gain. Kim has no other income and does not expect any significant income for several years. Bala and Ann, however, are in the 35% tax bracket. They do not have any other capital gains this year.

Required:

Question 1: Briefly explain, which two properties would you recommend that they sell this year?

Reference no: EM132450853

Questions Cloud

Benefits for private sector to control prescription : What are the benefits for private sector to control prescription medications? short, half page outline with 1 or 2 references.

Evaluate the role that the managed care organization play : Reflect on and evaluate the role that the managed care organization (MCO) plays in today's health care environment by developing a 250-500-word response.

Suggest for prevention of potential future injuries : One of the most important aspects of the care at this point is to create a comprehensive teaching plan. What are the important teaching points

Illustrate assessment of maths learning for particular pupil : A portfolio of evidence to illustrate the assessment of maths learning for a particular pupil - What has replaced the use of assessing by levels in your school?

Discuss identical parcels of land over several-year period : Discuss identical parcels of land over several-year period.Briefly explain, which two properties would you recommend that they sell this year?

Describe the trends in the community : A windshield survey is conducted from a car and provides a visual overview of a community. Conditions and trends in the community that could affect the health.

Benefits and drawbacks of hormone replacement therapy : What are the benefits and drawbacks of hormone replacement therapy in women during menopause?

Use of childhood immunizations : Active acquired immunity can be achieved through the use of childhood immunizations.

Examine a marketing plan for a small business : Examine a marketing plan for a small business in consulting / staffing service for IT It should include the following section:Unique Selling Proposition

User Account

All Pages