For the last nine years mr and mrs orchard live in a

Reference no: EM13584112

For the last nine years, Mr. and Mrs. Orchard live in a residence located on eight acres. In January of the current year they sell the home and two acres of land. The purchaser of the residence does not wish to own the entire eight acres of land. In December they sell the remaining six acres of land to another individual for $60,000. The house and the land have never been used by the Orchards in a trade or business or held for investment. The realized gains resulting from the two sales are computed as follows:

	House and Two Acres January Sales	Eight Acres December Sale
Selling price	$140,000	$60,000
Minus: Selling Expenses	(8,000)	(3,000)
Amount realized	$132,000	$57,000
Minus: Basis	80,000	(18,000)
Realized gain	$52,000	$39,000

As a result of the sales described above, what is the amount of realized gain that must be recognized during the current year?

Reference no: EM13584112

Questions Cloud

Two inspectors review the quality of a manufactured : two inspectors review the quality of a manufactured component and classify the items as good repairable and scrap. each

During the year 2009 tosco corporation suffered an 600000 : during the year 2009 tosco corporation suffered an 600000 loss when its factory was destroyed in a flood. assuming the

Grant wood company manufacturers desks most of the companys : grant wood company manufacturers desks. most of the companys desks are standard models and are sold on the basis of

Assuming that the experiment can be considered as a : a drug is assumed to be e?ective with an unknown probability p. to estimate p the drug is given to n patients. it is

For the last nine years mr and mrs orchard live in a : for the last nine years mr. and mrs. orchard live in a residence located on eight acres. in january of the current year

Sotex productions is doing a spring catalog shoot for a big : sotex productions is doing a spring catalog shoot for a big clothing retailer. they want to show 3 couples boy and girl

Last year mr james was involved in an automobile accident : last year mr. james was involved in an automobile accident severely injured his legs. as part of a long-term

Coakley beet processors inc processes sugar beets in : coakley beet processors inc. processes sugar beets in batches. a batch of sugar beets costs 36 to buy from farmers and

Womens sat math scores in 2007 had the n499110 distribution : womens sat math scores in 2007 had the n499110 distribution. what percent of women scored 750 or better? round your

User Account

All Pages