User Account

All Pages

What is wesley adjusted basis for the new residence

Assignment Help Accounting Basics
Reference no: EM132670810

Problem - Wesley, who is single, listed his personal residence with a real estate agent on March 3, 2019, at a price of $390,000. He rejected several offers in the $350,000 range during the summer. Finally, on August 16, 2019, he and the purchaser signed a contract to sell for $363,000. The sale (i.e., closing) took place on September 7, 2019. The closing statement showed the following disbursements:

Real estate agent's commission $21,780

Appraisal fee 600

Exterminator's certificate 300

Recording fees 800

Mortgage to First Bank 305,000

Cash to seller 34,520

Wesley's adjusted basis for the house is $200,000. He owned and occupied the house for seven years. On October 1, 2019, Wesley purchases another residence for $325,000.

Required -

a. Calculate Wesley's recognized gain on the sale.

b. What is Wesley's adjusted basis for the new residence?

c. Assume instead that the selling price is $800,000. What is Wesley's recognized gain? His adjusted basis for the new residence?

Reference no: EM132670810

Questions Cloud

How the given processes interact to affect the patient : A 67-year-old man presents to the HCP with chief complaint of tremors in his arms. He also has noticed some tremors in his leg as well.
How would one determine the unit cost of the product : How would one determine the unit cost of the product -- what are the components of the unit cost? What are some examples of the overhead costs?
How much attention do international customer pay to location : What do you think the decision to manufacture in Australia rather than in its domestic factories will do to the company's reputation at home?
Define how the use of cbt in groups compares to its use : Post an explanation of how the use of CBT in groups compares to its use in family settings. Provide specific examples from your own practicum experiences.
What is wesley adjusted basis for the new residence : Finally, on August 16, 2019, he and the purchaser signed a contract to sell for $363,000. What is Wesley adjusted basis for the new residence
What further information would you need : Kita Brown is a 36-year-old black female presenting to her local urgent care with headache and stating her mother took her blood pressure and it was.
How much must invest each month to reach goal : If you can earn 6%, compounded monthly on invested monies, how much (in addition to the $20,000 right now) must you invest each month to reach your goal?
Successfully implementing change plan : Summarize your strategies for successfully implementing the change plan in order to address the internal or external pressure.
Discuss the use of run charts and control charts : Why is it important to provide evidence-based care? Discuss some of the challenges nurse administrators face in creating an environment in which bedside nurses.

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