Liam owns a personal use boat that has a fair market value of $35,000 and an adjusted

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Liam owns a personal use boat that has a fair market value of $35,000 and an adjusted basis of $45,000. Liam’s AGI is $100,000. Calculate the realized and recognized gain or loss if:

a. Liam sells the boat for $35,000.

b. Liam exchanges the boat for another boat worth $35,000.

c. The boat is stolen and Liam receives insurance proceeds of $35,000.

d. Would your answer in part (a) change if the fair market value and the selling price of the boat were $48,000?

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South-Western Federal Taxation 2022 Individual Income Taxes

ISBN: 9780357519073

45th Edition

Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman

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Question Posted: Jul 14, 2022 03:55 AM

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Liam owns a personal use boat that has a fair market value of $35,000 and an adjusted

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a Recognized Gain Fair Market Value Selling Price 35000 35000 0 Realized Loss Adjusted Basis Se...View the full answer

South-Western Federal Taxation 2022 Individual Income Taxes

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