What is the recognized gain or loss from land transaction

Assignment Help Financial Accounting

Reference no: EM13776877

Lucy owns 400 shares of Linus, Inc. (adjusted basis $210,000). On September 28, 2014, she sells the 400 shares for their fair market value of $195,000. On October 12, 2014, she purchases 450 shares of Linus, Inc. for $220,500. In addition, Lucy received a gift of land in 1986 worth $31,000. The donor’s adjusted basis was $50,000. Lucy sold the land in 2014 for $85,000.

What is the realized gain/loss and recognized gain/loss on the September 28th sale AND what is the adjusted basis on the 450 shares purchased on October 12?

What is the recognized gain or loss from the land transaction in 2014? Assume no gift tax was paid.

Reference no: EM13776877

Questions Cloud

Calculate the receivables turnover ratio for the year : Universal Sports Supply began the year with an accounts receivable balance of $160,000 and a year-end balance of $180,000. Credit sales of $580,000 generate a gross profit of $280,000. Calculate the receivables turnover ratio for the year

Calculate the inventory turnover ratio for the year : Universal Sports Supply began the year with an inventory balance of $80,000 and a year-end balance of $52,000. Sales of $640,000 generate a gross profit of $220,000. Calculate the inventory turnover ratio for the year.

Straight-line amortization and annual interest payments : Oliver Company issued $800,000 of 6%, 5-year bonds at 98. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date?

Carrying value of the bond : A $750,000 bond was retired at 103 when the carrying value of the bond was $777,500. The entry to record the retirement would include a

What is the recognized gain or loss from land transaction : Lucy owns 400 shares of Linus, Inc. (adjusted basis $210,000). On September 28, 2014, she sells the 400 shares for their fair market value of $195,000. What is the recognized gain or loss from the land transaction in 2014? Assume no gift tax was paid..

What happens to the property at the problems horizon : Sam, the youngest of four, will graduate in industrial engineering this June. His future plans have not solidified yet, but his parents clearly believe that he will be self-supporting. In fact, they are planning on selling their home, taking a world ..

Total manufacturing overhead variance of alpha company : The management of Alpha Company has calculated the following variances. When determining the total production cost flexible budget variance, calculate the total manufacturing overhead variance of Alpha Company.

Write essay on absolutely true diary of a part-time indian : Write an essay about The Absolutely True Diary of a Part-Time Indian through a close reading and analysis of Arnold Spirit.

What type of damage these computer infections can do to data : Virus, Trojan, Worm, Rootkit, Describe how each applies to the realm of data communication. Also, discuss what type of damage these computer infections can do to data in a computer.

User Account

All Pages