Paulinersquos receives a 5000 credit instead of a cash

Reference no: EM13479970

Pauline’s Pastry Shop decides to remodel its offices this year. As part of the remodeling, Pauline’s trades furniture with a cost of $12,000 that had been expensed in the year of purchase (Section 179 expense election) for new furniture costing $22,000. Pauline’s receives a $5,000 credit (instead of a cash receipt) for the old furniture and borrows the remaining $17,000 from Easy Finance Company.

a.What is Pauline’s realized gain or loss on the old furniture? Maybe 0

b.What is Pauline’s recognized on the exchange?

c.What is Pauline’s deferred gain on the exchange?

d.What is the basis of the new furniture?

Reference no: EM13479970

Questions Cloud

The standards for variable manufacturing overhead have : the standards for variable manufacturing overhead have been established for a company that makes only one product the

Suppose you have 10000 in funds that you wish to invest in : suppose you have 10000 in funds that you wish to invest in the stock market. what typeblue chip etc of stocks would

What knowledge about writing the writing process andor : what knowledge about writing the writing process andor yourself as a writer did you learned that has helped you to

You are going out to celebrate your upcoming graduation and : you are going out to celebrate your upcoming graduation and want to make sure that you dont spend too much money.

Paulinersquos receives a 5000 credit instead of a cash : paulinersquos pastry shop decides to remodel its offices this year.nbsp as part of the remodeling paulinersquos trades

Determine two goals one short term and one long term that : determine two goals one short term and one long term that you wish to achieveyou can make up fictional ones if you

Pikus corporation makes a product that has the following : pikus corporation makes a product that has the following direct labor standards in january the companys budgeted

Assume that the tax on dividends and the tax on capital : 1. assume that the tax on dividends and the tax on capital gains is the same. all else equal what would a prudent

Suppose you have 10000 in funds that you wish to invest in : 1.determine two goals one short term and one long term that you wish to achieveyou can make up fictional ones if you

User Account

All Pages