Land for investment purposes

Assignment Help Financial Management
Reference no: EM131486654

Pamela owns land for investment purposes. The land is worth $300,000 (basis of $260,000 to Pamela). Pamela exchanges the land, plus $20,000 cash, for a warehouse to be used in her business. The FMV of the warehouse is $400,000, but the warehouse is subject to a mortgage of $80,000, which is assumed by Pamela. Pamela must recognize a gain of? Please show calculations so I can better check my work.

Reference no: EM131486654

Questions Cloud

Ethics and corporate responsibility in the workplace : PharmaCARE (We CARE about YOUR health®) is one of the world's most successful pharmaceutical companies, enjoying a reputation as a caring, ethical and well-run.
Differs from standard transfer pricing problem : Jane Fleming recently graduated from college with degree in landscape architecture. discuss how this situation differs from “standard” transfer pricing problem
How can this information help you pick a stock : In this article, the type of information contained in a firm's income statement and balance sheet-both statements contained in an annual report or a Securities.
Write a paper on recent macroeconomic policies : Write a paper on recent macroeconomic policies and behavior of the stock market. What the main reasons behind the Fed's recent decision to raise interest rates
Land for investment purposes : Pamela owns land for investment purposes. which is assumed by Pamela. Pamela must recognize a gain of?
What is meant by the term stagflation : What precautions can the Federal Reserve take to avoid inflation for the entire economy? What is meant by the term 'stagflation'
Estimating cash flows : Assume that your company is considering the replacement of an automated milling machine with one of the new machines offered by three different manufacturers.
Why do corporations split their stock : Assume you want to purchase stock. Would you use a full-service broker or a discount broker? Would you ever trade stocks online?
What is the amount of recognized gain : The acquired land is to be held for investment and the motorcycle is for personal use. What is the amount of recognized gain?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the company target debt-equity ratio

Fama's Llamas has a weighted average cost of capital of 12.5 percent. The company's cost of equity is 15.5 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 33 percent. What is the company's target debt-equity ratio?

  What is their yield to call

Thatcher Corporation's bonds will mature in 10 years. The bonds have a face value of $1000 and an 8% coupon rate, paid semiannually. The price of the bonds is $1100. The bonds are callable in 5 years at a call price of $1050. What is their yield to m..

  Four building blocks of financial statement analysis

Explain the purpose of financial statement analysis for both external and internal users D-Identify and explain the four building blocks of financial statement analysis

  Raising funds for major investment

You are the CFO of ADP and you are raising funds for a major investment. Your strategy is to issues bonds of varying maturities to investors. One of the longer term bonds being issued can be purchased for $25,000.00 per bond and pays $1,900.00 annual..

  Financial reporting environment for the quarter

Prepare a 2 page newsletter that identifies and summarises developments and changes in the financial reporting environment for the quarter from January to March 2013.

  Primo portfolio out performed market over the period

As port of her analysis, Jones also takes a look at one of Primo’s global funds. In this particular portfolio, Primo is invested 75% in Dutch stocks and 25% in British stocks. The benchmark invested 50% in each—Dutch and British stocks. Calculate the..

  Calculate the dollar-weighted rate of return for the year

An association had a fund balance of 1050 on January 1 and 1160 on December 31. At the end of every month during the year, the association deposited 90 from membership fees. There were withdrawals of 600 on February 28 and 400 on June 30. Calculate t..

  What is the implied overall capitalization rate

A property is being appraised assuming NOI will be $250,000 per year over the 25-year remaining economic life of the building. Using the sales comparison approach, land is found to be worth $500,000 today. What is the total property value? What is th..

  Duty of loyalty

Ally is a member and a manager of a manager-managed limited liability company called Movers & You, LLC, a moving company. The main business of Movers & You, LLC, is moving large corporations from old office space to new office space in other building..

  Rating of a companys brand of multi-featured cameras

Which one of the following is NOT a way to improve the P/Q rating of a company's brand of multi-featured cameras?

  Capital budgeting-replacement decision

Lexington Manufacturing, Inc. (Lexington) is negotiating for the purchase of a new price of equipment for its current operations. Lexington has received an offer which specifies that the equipment could be purchased for $80,000. The coporate tax rate..

  What variables must be known in applying the capitalization

What variables must be known (or estimated) in applying the capitalization of cash flow method of valuation to a physical or financial asset?

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