During the current year stan sells a tract of land for

Assignment Help Accounting Basics

Reference no: EM13576235

During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was $300,000 because the annual exclusion was $10,000 in 1995. Maxine purchased the property on April 12, 1980, for $110,000. At the time of the gift, Maxine paid a gift tax of $12,000. In order to sell the property, Stan paid a sales commission of $16,000.
a. What is Stan's realized gain on the sale?

b. How would your answer to Part a change, if at all, if the FMV of the gift property was $85,000 as of the date of the gift?Show calculations!

Reference no: EM13576235

Questions Cloud

Te professor gathers information from a random sample of : a professor is interested in whether there is a difference in counseling students statistics competency scores among

Assume all of the same facts as in part a except that : roberta is an accountant employed by a local firm. during the year roberta incurs the following unreimbursed

What would you expect to happen to the price of their stock : xyz corp. has 1000 shares outstanding and retained earnings of 25000 dollars. what would you expect to happen to the

A teacher is interested in comparing the effects of three : a teacher is interested in comparing the effects of three different types of rehearsal methods rote rehearsal imagery

During the current year stan sells a tract of land for : during the current year stan sells a tract of land for 800000. the property was received as a gift from maxine on march

Identify four sources of finance internal or external but : acme inc. is a wholesaler and distributor of electrical components. the most recent draft financial statements of the

If the sample mean is 8 the hypothesized population mean : if the sample mean is 8 the hypothesized population mean is 4 and the population standard deviation is 2 compute the

Tracy owns a nondepreciable capital asset held for : tracy owns a nondepreciable capital asset held for investment. the asset was purchased for 250000 six years earlier and

A random sample of 60 undergraduates of a large university : a random sample of 60 undergraduates of a large university found that 32 were in support of an activity fee increase.

User Account

All Pages