Gold Company was experiencing financial difficulties but was not bankrupt or insolvent. National Bank, which held...

 

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Gold Company was experiencing financial difficulties but was not bankrupt or insolvent. National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000. The bank had made the loan to Gold when it purchased the real estate from Silver, Inc. Pink, Inc., the holder of a mortgage on Gold's building, agreed to accept $40,000 in full payment of the $55,000 due. Pink had sold the building to Gold for $150,000 that was to be paid in installments over eight years. As a result of the above, Gold must: Oa. Include $40,000 in gross income. Ob. Reduce the basis in its assets by $40,000. Oc. Include $25,0C in gross income and reduce its basis in its assets by $15,000. Od. Include $15,000 in gross income and reduce its basis in the building by $25,000. QUESTION 20 Jane, whose husband died in November 2019, maintains a household in which her dependent child lives. Which (if any) of the following is her filing status for the tax year 2020? (Note: Jane is the executor of her husband's estate.) Oa. Single Ob. Married, filing separately Oc. Surviving spouse Od. Head of household Gold Company was experiencing financial difficulties but was not bankrupt or insolvent. National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000. The bank had made the loan to Gold when it purchased the real estate from Silver, Inc. Pink, Inc., the holder of a mortgage on Gold's building, agreed to accept $40,000 in full payment of the $55,000 due. Pink had sold the building to Gold for $150,000 that was to be paid in installments over eight years. As a result of the above, Gold must: Oa. Include $40,000 in gross income. Ob. Reduce the basis in its assets by $40,000. Oc. Include $25,0C in gross income and reduce its basis in its assets by $15,000. Od. Include $15,000 in gross income and reduce its basis in the building by $25,000. QUESTION 20 Jane, whose husband died in November 2019, maintains a household in which her dependent child lives. Which (if any) of the following is her filing status for the tax year 2020? (Note: Jane is the executor of her husband's estate.) Oa. Single Ob. Married, filing separately Oc. Surviving spouse Od. Head of household

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Answer Answer Breakdown Gold Company Question 1 d Include 15000 in gross income and reduce its basis ... View the full answer