How much gain should bpl recognize

Assignment Help Financial Accounting
Reference no: EM132920228

Question - BPL Corp using an accrual basis sold an investment property (tax basis $516,000) to George LLC in exchange for the note for $860,000 issued by George. BPL has recorded the taxable gain from the transaction using the installment method. George defaulted on the note of which principal was $640,000; BPL repossessed the property this year. The interest of $30,000 has been accrued on the note. How much gain should BPL recognize on repossession, and what is its new tax basis in the repossessed property?

Reference no: EM132920228

Questions Cloud

What will be the likely impact on walgreen current ratio : What will be the likely impact on Walgreen's current ratio? Assume the lease amount is booked as a debit to a long-term asset, and the credit
Ethical dilemmas faced by managers in companies : 1. List any FIVE (5) ethical dilemmas faced by managers in companies
Compute for the bonus liability if basis is on net income : Net income before bonus and tax for the year is 1,000,000 and tax rate is 20%. Compute for the bonus liability if the basis is on net income after tax
Types of behavioral relationships for joel porter : Draw four pictures showing examples of four types of behavioral relationships for Joel Porter's BMW automobile dealership.
How much gain should bpl recognize : The interest of $30,000 has been accrued on the note. How much gain should BPL recognize on repossession, and what is its new tax basis in repossessed property
What will the liability be called : State whether or not each of the following events would result in a liability being recognised in accounts at 30 June. If so, what will the liability be called
Literature review on study on the mechanism of convective : Literature review on Study on the Mechanism of Convective Heat Transfer Enhancement
What is the balance of the fund after ten years : The plan is expected to give 10% return on investment. What is the balance of the fund after 10 years if the annual contribution is 100,000 per year?
Calculate the depreciation charges for each : An airline company bought and put into operation a jet aircraft on 1 February 2017 for $7 000 000. Calculate the depreciation charges for each

Reviews

Write a Review

Financial Accounting Questions & Answers

  Make the statement of comprehensive income extract

The loan was acquired from National Commercial Bank at an effective interest rate of 12%. Make the Statement of Comprehensive Income Extract for the year

  What is the required return for Arch Coal stock

According to your research, the growth rate in dividends for Arch Coal for the previous 10 years has been 3.5 percent. If investors feel this growth rate will continue, what is the required return for Arch Coal stock?

  What is the type of change

What is the type of change? When the company purchased land several years ago, the accounting clerk posted the journal entry

  How many months will take

CEO plans to increase production at a rate of 5.24 percent per month until the firm is producing 7,282 of refrigerators per month. How many months will take?

  How do report any liability on the company balance sheet

Report any liability on the company's balance sheet at December 31st.Oct 31: Sold one-year subscriptions, collecting cash of $1,750, plus HST of 13%.

  How much an investor would have to pay for the bond

Using semiannual compounding, determine how much an investor would have to pay for this bond if it were priced to yield 10.260%.

  What was the fair value of net identifiable assets acquired

What was the fair value of net identifiable assets acquired? Factors that contributed to the recognition of goodwill or gain on bargain purchase.

  Determine the net profit or loss from the futures contract

Show the daily marked-to-market transactions on the trader's account and determine the net profit or loss from the futures contract

  How lessor should compute the annual rental amounts

How Lessor should compute the annual rental amounts. A table summarizing the lease and interest receipts that would be suitable for Lessor.

  Prepare journal entry necessary as a direct result of change

Prepare any journal entry necessary as a direct result of the change, as well as any adjusting entry for 2021 related to the situation described

  Under the retail inventory method

Under the retail inventory method: Lou Lewis borrows $10,000 to be repaid over 10 years at 9%. Repayment of principal in the first year is ______.

  Determine the cost of goods sold and gross profit amounts

Dorado Corporation, Determine the cost of goods sold and gross profit amounts Dorado should record for the three months ending September 30.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd