What is jason realized gain on the exchange

Assignment Help Accounting Basics
Reference no: EM132084050

Question - Jason and Mark exchange equipment each used in their business. Jason purchased his equipment for $25,000 and had taken $12,000 of depreciation on the equipment up to the date of the exchange. There was a liability on the equipment of $10,000. In the trade, Jason receives Mark's equipment that is worth $20,000. Mark assumes the $10,000 loan Jason had on the equipment. Mark's adjusted basis in his equipment is $16,000 on the date of the exchange.

a. What is Jason's realized gain on the exchange?

b. What is the amount and the character of the gain Jason must recognize on the exchange?

c. What is Jason's basis in the equipment acquired in the exchange?

Reference no: EM132084050

Questions Cloud

Stages of the consumer buying decision process : What are the 5 stages of the consumer buying decision process? How can you use this information to your advantage as a marketer??
The adoption of an electronic portfolio in lieu : Imagine that a local school district is proposing the adoption of an electronic portfolio in lieu of its current paper version.
What is the total amount invested : What is the total amount invested (total paid-in capital) by all stockholders as of May 31? how is this placed on a balance sheet
Why it is important for educators to have a growth mindset : Defend your thoughts about how and why it is important for educators to have a "Growth Mindset."
What is jason realized gain on the exchange : Jason and Mark exchange equipment each used in their business. What is Jason's realized gain on the exchange
Explain three specific ways you will show your students : Explain three specific ways you will show your students that you believe in them as you create your own classroom culture and climate.
Relationship between customer satisfaction and retention : Given the implications between the relationship between customer satisfaction and retention,
Calculate the factory overhead rate for the year : Using the single plantwide factory overhead rate based on direct labor hours, calculate the factory overhead rate for the year
Why would you be risk-averse-risk-loving or risk-neutral : As an investor, Why would you be a risk-averse, risk-loving or risk-neutral?

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.

  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!

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