Reference no: EM13956212
QUESTION 1: Jarred sells for $300,000 rental property he purchased in 2006 for $160,000. In 2008 he replaced the entire roof (not a repair) for $12,000 and also paid $2,000 for repairs to the inside of the rental. Thus far, Jared deducted $18,440 for depreciation. What is Jarred's realized and recognized gain or loss on this sale?
1. $58,440 Gain
2. $9,560 Gain
3. $70,440 Gain
4. $46,440 Gain
QUESTION 2: Alice sells land that has $60,000 mortgage. She receives cash $40,000 plus stock in ABC company worth $30,000. The buyer is assuming the mortgage. Alice has an adjusted basis in the land of $80,000. What is Alice's realized/recognized gain/loss?
1. $50,000 Gain
2. ($10,000) Loss
3. $20,000 Gain
4. None of the above
QUESTION 3: Alice sells land that has $60,000 mortgage. She receives cash $40,000 plus stock in ABC company worth $30,000. The buyer is assuming the mortgage. Alice has an adjusted basis in the land of $80,000. What is Alice's amount realized under IRC Section 1001(b)?
1. $70,000
2. $130,000
3. $100,000
4. $50,000
QUESTION 4: Joseph purchased 7,500 shares of BCD corp in 2000 for $60,000. Unfortunately he did not have the good fortune of benefiting from the increase in value of the stock since he died December 11, 2013 when the stock was worth $500,000. The estate did not elect an alternate valuation date. The stock was inherited by his daughter, Judy. She received the stock from the estate on April 1, 2014 when it had a value of $525,000. What is Judy's basis in the stock?
1. $60,000
2. $420,000
3. $500,000
4. $525,000
QUESTION 5: Jack and Jill reached an amicable settlement for their divorce. Under the terms of their agreement Jill is going to transfer 1000 shares of XYZ Corp stock to Jack in satisfaction of his property rights. The stock originally cost Jill $30,000 and it's currently trading on the NYSE with the FMV of $45,000. Jack has asked you what his basis is in the shares of stock.
1. $45,000
2. $30,000
3. $0
4. Basis cannot be determined.
What will the principal balance on the loan be
: You take out a 30-year $300,000 mortgage loan with an APR of 8 percent and monthly payments. What are the monthly payments? In 16 years you decide to sell your house and payoff the mortgage. What will the principal balance on the loan be? What will y..
|
Treasury inflation protected security
: Suppose the rate of return on a 10-year T-bond is currently 5.00% and that on a 10-year Treasury Inflation Protected Security (TIP) is 2.10%. Suppose further that the maturity risk premium on a 10-year T-bond is 0.9%, that no maturity risk premium is..
|
What is the net value of the payments vs. receipts
: Carol Thomas will pay out $18,000 at the end of the year 2, $20,000 at the end of year 3, and receive $22,000 at the end of year 4. With an interest rate of 11 percent, what is the net value of the payments vs. receipts in today's dollars?
|
Explore horticultural programs at universities listed
: Explore the horticultural programs at the universities listed below. Find the Web pages that provide information about the research being done at the university. See if any of them are doing research related to topics discussed in this class.
|
What is jarreds realized and recognized gain or loss on sale
: In 2008 he replaced the entire roof for $12,000 and also paid $2,000 for repairs to the inside of the rental. Thus far, Jared deducted $18,440 for depreciation. What is Jarred's realized and recognized gain or loss on this sale?
|
What is the market-to-book ratio
: Lemon Lymon, Inc., has a current stock price of $80. For the past year the company had net income of $7,400,000, total equity of $32,450,000, and 3.6 million shares of stock outstanding. What is the market-to-book ratio? Please show your work.
|
What must annual deposit be
: Lisa Simpson wants to have $1,700,000 in 60 years by making equal annual end-of-the-year deposits into a tax-deferred account paying 9.75 percent annually. What must Lisa’s annual deposit be?
|
Find the prob. that they get such a family.
: Find the prob. that they get such a family and the boy is the youngest
|
Assessment of the relative riskiness of investing
: The S&P stock index represents a portfolio comprised of 500 large publicly traded companies. On December 24, 2007, the index had a value of 1,410 and on December 24, 2008, the index was approximately 905. The rate of return earned on the S&P 500 is? ..
|