What is Bruce installment sale gain in the year of sale

Assignment Help Accounting Basics
Reference no: EM132660533

Problem - Arnold gave land to his son, Bruce. Arnold's basis in the land was $100,000, and its fair market value at the date of the gift was $150,000. Bruce borrowed $130,000 from a bank that he used to improve the property. He sold the property to Della for $360,000. Della paid Bruce $90,000 in cash, assumed his $120,000 mortgage, and agreed to pay $150,000 in two years. Bruce's selling expenses were $10,000. Della is going to pay adequate interest. What is Bruce's installment sale gain in the year of sale?

Reference no: EM132660533

Questions Cloud

What is the value of the embedded put option : With the term structure flat at 6 percent (EAY), what is the value of the embedded put option to the bondholder?
What do think might be some pitfalls of budgeting : What do you think might be some pitfalls of budgeting, and how can they be avoided? Why it is important for a business to have a budget.
What would be the tax consequences of Son sale : In May 2019, Son received an offer of $400,000 for the land, to be paid over three years. What would be the tax consequences of Son's sale
Transnational organized crime and terrorism : Compare and contrast transnational organized crime (TOC) and terrorism. Describe similarities and differences between TOC and terrorism,
What is Bruce installment sale gain in the year of sale : Bruce's selling expenses were $10,000. Della is going to pay adequate interest. What is Bruce's installment sale gain in the year of sale
Discuss the types of things security manager : Discuss the types of things a security manager will look for in a security assessment, risk assessment, etc.;
Describe how the message helped to build the brand : Did the campaign help the company build or reinforce a brand image (i.e. define the message in the campaign, and describe how the message helped)
Why would Sara prefer the installment sale : Irene has made Sara an offer on the purchase of a capital asset. Sara's cost of the asset is $25,000. Why would Sara prefer the installment sale
Difference between various elements of crime : What is the difference between the various elements of crime, including actus reus, mens rea, and concurrence? How do they relate to the case?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which of the following is reported as an operating activity

which of the following is reported as an operating activity in the statement of cash flows? the payment of

  Prepare a statement of activities for mercy hospital

Board designated funds earned $82,000 in income. Prepare a statement of activities for Mercy Hospital for the yearended December 31, 2012.

  Prepare a brief memo to traces tax vp reporting

prepare a brief memo to Trace's Tax VP, reporting Trace's branch profits tax liability for the current year, along with a planning idea for reducing profits tax

  Prepare the journal entries that should be recorded

Prepare the journal entries that should be recorded as of December 31, 2017, to recognize each of the situations above

  What are the business risk impact

What are the business risk impact and the accounts (as well as the related assertions) most likely affected by the strategic decisions made by Simo Ltd

  Hal contributes property with a basis of 45000 and subjects

hal steveand lew form a partnership to operate a grocery store. for each of the following contributions by the partners

  How much would be willing to pay for series of cash flows

How much would be willing to pay for series of cash flows,If interest rates are 5 percent per year, how much would you be willing to pay for this series of cash

  Bakels company issued a 100000 20 year bond with a stated

bakels company issued a 100000 20 year bond with a stated interest rate of 6. assume interest payments are made

  How many widgets do they need to sell

This product sells for £15, and makes a contribution of £5 per unit. Total fixed costs per annum are £11,125. How many widgets do they need to sell

  What is the amount of their child tax credit

Mia and Noah have four children, ages one month, 13, 15, and 19. What is the amount of their child tax credit/credit for other dependents

  How is the allowance account related to bad debt expense

let's talk about the accounting issues related to valuation of accounts receivable and why they are important. Please include the methods for estimating the allowance for bad debt expense in your discussion. How is the allowance account related to..

  Problem regarding the accounts payable

Zucha Corporation has an inventory period of 55 days, an accounts receivable (A/R) period of 6 days, and an accounts payable (A/P) period of 3 days. The company's annual sales is $182,795. Answer following questions.

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