User Account

All Pages

What factors would motivate Steve to sell his land

Assignment Help Accounting Basics
Reference no: EM132670767

Problem - Steve owns real estate (adjusted basis of $12,000 and fair market value of $15,000), which he uses in his business. Steve sells the real estate for $15,000 to Aubry (a dealer) and then purchases a new parcel of land for $15,000 from Joan (also a dealer). The new parcel of land would normally qualify as like-kind property.

Required -

a. What are Steve's realized and recognized gain on the sale of the land he sold to Aubry?

b. What is Steve's basis for the land he purchased from Joan?

c. What factors would motivate Steve to sell his land to Aubry and purchase the land from Joan rather than exchange one parcel of land for the other?

d. Assume that the adjusted basis of Steve's original parcel of land is $15,000 and the fair market value of both parcels of land is $12,000. Respond to parts (a) through (c).

Reference no: EM132670767

Questions Cloud

Discuss the specific responsibilities of steering committee : Explain the possible reasons for the fact that auditors have recommended forming a steering committee. Also discuss the specific responsibilities
Compute the direct material price and quantity variance : Make brief explanation of the possible causes of each variance. Compute the Direct material price and quantity variance for August
What is Tab realized gain or loss : Tab exchanges real estate used in his business along with stock for real estate to be held for investment. What is Tab realized gain or loss
Calculate the amount of depletion : Calculate the amount of depletion taken in 2019. (Note: In your calculations, round depletion per barrel to two decimal places.)
What factors would motivate Steve to sell his land : What factors would motivate Steve to sell his land to Aubry and purchase the land from Joan rather than exchange one parcel of land for the other
How do discuss company a net cash flows from operating : How do discuss Company A's net cash flows from operating, investing and financing activities and the trends evident over the last three years.
Writing description of your proposed capstone project : Write a 500-750 word description of your proposed capstone project topic. Include the following: The problem or issue, intervention, quality initiative.
Prepare the journal entry to record the amortization expense : MicroSystems Inc. acquired a patent for $182,400. Prepare the journal entry to record the amortization expense related to the patent.
What is the basis of the new property : What is the basis of the new property in each of the exchanges - Office building (adjusted basis of $45,000) for bulldozer (fair market value of $42,000)

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd