What is Bruce installment sale gain in the year of sale

Assignment Help Accounting Basics
Reference no: EM132672206

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: EM132672206

Questions Cloud

Why should the seller and not the buyer be more concerned : The land is a capital asset to the seller, and the holding period is four years. Why should the seller and not the buyer be more concerned
How is the cost of preferred shares calculated : What methods are used to calculate the cost of debt before taxes? How is pre-tax cost of debt converted to after-tax cost? How is the cost of preferred shares
Socioemotional development in infancy : 1. How does parenting style influence attachment? What is one parenting style example
Explain the advantage of equity financing and debt financing : Explain which type of long-term liability financing you would choose to buy the business? Explain the advantages of equity financing and debt financing
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
Provide a detailed explanation of the syndrome : Provide a detailed explanation of the syndrome: origin/history of it, characteristics and symptoms, any data or statistics that you can find on prevalence
Why would Sara prefer the installment sale : Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash. Why would Sara prefer the installment sale
Physical and cognitive development in early childhood : Briefly describe the two stages of preoperational thought and what are examples of these two sub-stages and explain what is meant by operations.
What way are the economic meanings in the investment project : What way are the economic meanings in the investment project evaluation criteria not necessarily suited to the corporate financial objective?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What are the experimental units in the study

A farmer is conducting an experiment to determine which variety of apple tree, Fuji or Gala, will produce more fruit in his orchard.

  The value of any asset is

The value of any asset is the ________.a. present value of the sum of all future cash flows it is expected to provide over the relevant time period.b. sum of all future cash flows it is expected to provide over the relevant time period.c. sum of the ..

  Which order do select and why

Customer B is ordering 1,000 units and is willing to pay $140 per unit, and these units have a contribution margin ratio of 40%. Which order do select and why

  Did the amount of cash in-crease or decrease

In a recent business transaction, land was exchanged for cash. Did the amount of cash in-crease or decrease - One entity sold land. The other entity bought land. For the entity that sold land, cash increased. For the entity that bought land, cash d..

  Jamir company has a contribution margin ratio of 35 if

jamir company has a contribution margin ratio of 35. if jamir has 335405 in fixed costs what amount of sales will need

  Compute the profit margin ratio and gross profit rate

Compute the profit margin ratio and gross profit rate. Caltor Company s assets at the beginning of the year were $770,000 and were $830,000 at the end of year

  Prepare the entries j should make

Under normal circumstances, J earns 11% on its funds. The cost of the inventory sold was $340,000. Prepare the entries J should make

  Compute the selling price using the variable cost method

GoSnow sells snowboards. Each snowboard requires direct materials of $115, direct labor of $40, Compute the selling price using the variable cost method

  Compute the amount of phantom profit

In its first month of operation, Kuhlman Company purchased 330 units of inventory for $11, Compute the amount of phantom profit that would result

  Calculate the indicated ratio construct the dupoint equation

Calculate the indicated Ratios 2Construct the Dupoint equation for both Campsey and the industrys 3 outline campsey strength and weaknesses

  What will be your decision-making process

What will be your decision-making process? All future costs are relevant in decision making. Do you agree? Why?

  Identify which federal law regulates the following

Identify which federal law regulates the following areas and situations: cross checking IRS and Social Security files to verify the accuracy of information, customer liability for debit cards, the right to access data contained in federal agency f..

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