Moran owns a building he bought during year 0 for $227,000. He sold the building in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Moran owns a building he bought during year 0 for $227,000. He sold the building in year 6. During the time he held the building he depreciated it by $40,250. What is the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) a. Moran received $210,000. Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized $ 210,000 $ Unrecaptured $1250 gain (and $1231 gain) 13,250 Remaining $1231 gain (loss) 2$ b. Moran received $243,000. Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized Unrecaptured $1250 gain (and $1231 gain) $ 46,250 40,250 Remaining $1231 gain (loss) 6,000 c. Moran received $182,000. Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized $ (14,750) Unrecaptured $1250 loss (and $1231 loss) Remaining $1231 gain (loss) $ (14,750) Moran owns a building he bought during year 0 for $227,000. He sold the building in year 6. During the time he held the building he depreciated it by $40,250. What is the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? (Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable.) a. Moran received $210,000. Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized $ 210,000 $ Unrecaptured $1250 gain (and $1231 gain) 13,250 Remaining $1231 gain (loss) 2$ b. Moran received $243,000. Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized Unrecaptured $1250 gain (and $1231 gain) $ 46,250 40,250 Remaining $1231 gain (loss) 6,000 c. Moran received $182,000. Answer is complete but not entirely correct. Description Amount Total Gain/(Loss) Recognized $ (14,750) Unrecaptured $1250 loss (and $1231 loss) Remaining $1231 gain (loss) $ (14,750)
Expert Answer:
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6. During the time he held the building he depreciated it by $32,000. What is the amount and character of the...
-
Moran owns a building he bought during year 0 for $150,000. He sold the building in year 6 and received $169,000. During the time he held the building he depreciated it by $32,000. What is the amount...
-
What are the amount and character of the gain or loss recognized by the distributing corporation when making liquidating distributions in the following situations? What is the shareholders basis for...
-
The following two equations have a common solution of (1, 2, 3). Which equation would complete a system of three linear equations in three variables having solution set {(1, 2, 3)}? x+y+z=6 2x = y +...
-
Which international currency or currencies are likely to increasingly assume a role of the international transaction currency in international trade? Why?
-
The following tableau represents a specific simplex iteration. All variables are nonnegative. The tableau is not optimal for either a maximization or a minimization problem. Thus, when a non basic...
-
If \(X_{t} \sim N(0, t)\), calculate the distribution of \(\left|X_{t} ight|\). Calculate \(\mathbf{E}\left|X_{t} ight|\) and \(V\left(\left|X_{t} ight| ight)\).
-
Assume that a firm separately determined inventory under FIFO and LIFO and then compared the results. 1. In each space below, place the correct sign [less than ( ), or equal (=)] for each comparison,...
-
During COVID, the government provided low-income families with a child tax credit. That policy had a major impact on child poverty in the United States. Now that the credit is going away, child...
-
For each item listed in the table below, input the balance for the date range 10/1/20XX to 12/1/20XX. For the Journal, input the balance for the date range 11/13/20XX to 12/1/20XX. Note: Enter your...
-
What is that activity that the internal auditor or the internal audit team may undertake to determine the reasons for any finding specifically on non-compliance to internal controls from which...
-
Design a PowerPoint presentation for the capital budgeting committee that includes all of the following: Create a brief 1-2 slide description of the proposed programs. Develop a comparison between...
-
uppose the price of a non-dividend paying stock is $50. There exist European call and put options on the stock with one year to maturity and the strike price $50. The call is worth $4.5 and the put...
-
3) What are the tax consequences if gifted his life insurance policy on 12/31/23: John would like to know the tax consequences and filing requirements if he gifts his life insurance equally to his...
-
Assets Current Assets: Cash and cash equivalents Accounts Receivable, net Inventory Total Current Assets Property & Equipment at cost Less Accumulated depreciation Net Property & Equipment Total...
-
After reading the Snowden & Boone (2007) article highlighting contexts in which leaders make contextually appropriate decisions, create a post to share how this framework might be useful in your...
-
IDEA provides regulations and guidelines for professional practice when developing IEP goals in the IEP. Goals must be appropriate and align with the PLAAFP. Goals should be aligned with age...
-
Listed below are several terms and phrases associated with basic assumptions, broad accounting principles, and constraints. Pair each item from List A (by letter) with the item from List B that is...
-
Is a net operating loss (NOL) allowed as a deductible item for corporations in the following states? If so, what are the carry back and carry forward provisions? a. Your state b. California c....
-
What does it mean to state that a particular party has the "burden of proof? What are some examples of the level of burden of proof a party may carry?
-
The taxpayer is president of a company. He is very wealthy and has a good deal of assets. He went to Bank 1 in January Yr. 1 to borrow $1,000,000. He used the proceeds of the loan to purchase stock....
-
Under an evolutionary classification system, species are grouped together based on (a) their shared similarities. (b) how closely related they are to one another. (c) their position in a hierarchy...
-
What criteria are used to classify species in the Linnaean system?
-
What criteria are used to classify species in an evolutionary classification system?
Study smarter with the SolutionInn App