Reference no: EM132659999
Problem - Lloyd owns a beach house (four years) and a cabin in the mountains (six years). His adjusted basis is $300,000 in the beach house and $315,000 in the mountain cabin. Lloyd also rents a townhouse in the city where he is employed. During the year, he occupies each of the three residences as follows:
Townhouse 135 days
Beach house 155 days
Mountain cabin 75 days
The beach house is close enough to the city so that he can commute to work during the spring and summer. Although this level of occupancy may vary slightly from year to year, it is representative during the time period that Lloyd has owned the two residences.
Because Lloyd plans to retire in several years, he sells both the beach house and the mountain cabin. The mountain cabin is sold on March 3, 2019, for $540,000 (related selling expenses of $35,000). The beach house is sold on December 10, 2019, for $700,000 (related selling expenses of $42,000).
Required -
a. Calculate Lloyd's least allowable recognized gain on the sale of the two residences.
b. Assume instead that both residences satisfy the two-year ownership and use tests as Lloyd's principal residence. Because the mountain cabin is sold first, can Lloyd to apply the § 121 exclusion to the sale of the beach house? Explain.
|
Find what was the cost of goods manufactured for year
: Work-in-process inventory, beginning $ 70. What was the cost of goods manufactured (finished) for the year (in thousands of $)?
|
|
Write a letter to Nell advising her of the tax consequences
: Write a letter to Nell advising her of the tax consequences and how taxes can be minimized. Nell's address is 100 Oak Avenue, Billings, MT 59101
|
|
What was the cost of the raw materials used
: What was the cost (in thousands of $) of the raw materials used in production during the year? Raw materials inventory, beginning $ 40
|
|
Demonstrate what total manufacturing cost assigned to job
: Fickel Company has two manufacturing departments-Assembly. What is the total manufacturing cost assigned to Job N-60? (Do not round intermediate calculations.)
|
|
Calculate Lloyd least allowable recognized gain
: The beach house is sold on December 10, 2019, for $700,000 (related selling expenses of $42,000). Calculate Lloyd least allowable recognized gain
|
|
Explain the purposes of the uniform crime reports
: Explain the purposes of the Uniform Crime Reports (UCR) and the National Crime Information Center (NCIC). Identify and discuss the various weaknesses related.
|
|
Would journal entry to dispose of underapplied or overapply
: Osborn Manufacturing, Would journal entry to dispose of the underapplied or overapplied overhead increase or decrease the company's gross margin? By how much?
|
|
What is Missy recognized gain
: What is Missy's recognized gain if she immediately accepts the $330,000 offer (i.e., 11 months after the listing date)? Selling expenses are $20,000
|
|
What were the sources of conflict between bell and sharpe
: Which of the five conflict resolution techniques does each man prefer in handling his conflict? Is there another conflict resolution approach would recommend?
|