Reference no: EM131268062
Walter swaps his warehouse for Sally’s office building, and the exchange qualifies as a like-kind exchange. Walter’s adjusted basis for the warehouse is $500,000 and the warehouse is subject to a liability of $150,000. The FMV of Sally’s office building is $740,000 and it is subject to a liability of $95,000. Each asset is transferred subject to the liability. What is Walter’s recognized gain, if any, on the transaction; and what is his basis in the office building?
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Adopted defined benefit pension plan
: Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2016. The provisions of the plan were not made retroactive to prior years. A local bank, engaged as trustee for the plan assets, expects plan assets to earn a 10% rate of r..
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Self-supporting and dependent of his parents
: In 2015, David, a single 18-year old taxpayer, received a salary of $3,600 and interest income of $1,800. He had $600 in itemized deductions. Calculate David’s taxable income assuming he is (a) self-supporting and (b) a dependent of his parents
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Adjusted gross income and taxable income
: What is the 2016 adjusted gross income and taxable income for Bill and Lola, a married couple, with two dependent children, based on the following information?
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Gain from dispositions of certain depreciable property
: A taxpayer sold for $250,000 equipment that had an adjusted basis of $220,000. Through the date of the sale, the taxpayer had deducted $40,000 of depreciation. Of this amount, $27,000 was in excess of straight-line depreciation. What amount of gain w..
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Each asset is transferred subject to the liability
: Walter swaps his warehouse for Sally’s office building, and the exchange qualifies as a like-kind exchange. Walter’s adjusted basis for the warehouse is $500,000 and the warehouse is subject to a liability of $150,000. The FMV of Sally’s office build..
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Depreciation deductions-gain or loss on the sale
: Doris acquired a machine at a cost of $30,000 for use in her business, and she placed it in service on April 1, 2014. The machine is depreciated under MACRS, with a 7-year recovery period. This machine was the only asset Doris purchased this year. Ca..
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Long term capital gain or long term capital loss on sale
: Wanda owns a non-depreciable capital asset she has held for investment. She purchased the asset for $200,000 six years ago, and it is now subject to a $54,000 liability. Calculate the amount of Wanda’s Long Term Capital Gain or her Long Term Capital ..
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Using the percentage-of-completion method
: In spring 2015, Parmac Engineering Company signed a $1,000,000 contract with the city of Parkersburg, to construct a new city hall. Parmac expects to construct the building within two years and incur expenses of $600,000. Using the percentage-of-comp..
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What must be done before jack can claim the exemption
: Jane, age 65, who lives with her unmarried son, Jack, received $7,000, which was used for her support during the year. Her sources of support were as follows: Social Security Benefits $1,500 Jack 2,600 Carol, an unrelated friend 800 Dwayne, Jane’s so..
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