User Account

All Pages

What is Missy recognized gain

Assignment Help Accounting Basics
Reference no: EM132670840

Problem - Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ownership, she occupied it as her principal residence. During the past two years, she was in graduate school and rented the residence. After graduate school, Missy returned to the same location where she previously worked. At this point, she purchased another residence for $400,000 and listed her old residence for sale at $340,000. Due to a slow real estate market, 11 months later Missy finally receives an offer of $330,000.

Required -

a. What is Missy's recognized gain if she immediately accepts the $330,000 offer (i.e., 11 months after the listing date)? Selling expenses are $20,000.

b. What is Missy's recognized gain if she rejects the $330,000 offer and accepts another offer of $340,000 three months later (i.e., 14 months after the listing date)?

c. Advise Missy on which offer she should accept (assume that she is in the 24% tax bracket).

Reference no: EM132670840

Questions Cloud

Discuss about the general ledger bank account balance : Discuss the items that can cause differences between the general ledger bank account balance (as prepared by the bookkeeper) and the balance as per bank
Common elements used to derive occupational exposure limits : Discuss the common elements used to derive occupational exposure limits (OELs). Provide your opinion as to which of the elements is the most important.
Provide adjusting general journal entries as at august : Provide adjusting general journal entries as at 31 August 2016. Show all calculations. Sipho would like to prepare statements on a monthly basis.
Compute the total overhead variance for world company : Compute the total overhead variance. World Company Expects to operate at 90% of it productive capacity of 17,000 units per month.
What is Missy recognized gain : What is Missy's recognized gain if she rejects the $330,000 offer and accepts another offer of $340,000 three months later i.e 14 months after the listing date
Definition of initial direct cost : Definition of initial direct cost. The classification criteria for when a lessee classifies a lease as a finance and a lessor classifies a lease as a sales-type
What the amount of depreciation for the third year would be : Using the sum-of-the-years-digit method, the amount of depreciation for the third year would be? Estimated salvage value $ 12,000
Advise Cisco of the tax consequences of replacing versus : Advise Cisco of the tax consequences of replacing versus not replacing the residence. Which do you recommend to him
Find the transaction to enter the exchanges of two assets : Find the transaction to enter the exchanges of two assets would result in the recognition of. A printer that cost $600 and has been owned for 2 years

Reviews

Write a Review

Accounting Basics Questions & Answers

  What we called the risk involved in this case example

The auditor checks the company's financial statements using sampling. What we called the risk involved in this case example? Explain your answer

  Collecting information from the accounting records

You spend the next day collecting information from the accounting records, performing the analysis, and writing a memo to explain the results. The company president is pleased with your memo. You report that the new sales commission plan will lead..

  List three unique characteristics of state

List three unique characteristics of state and local governmental accounting as contrasted with business enterprise accounting.

  Determine extraordinary gains and losses arise from events

The 2009-2010 comparative balance sheets showed that accounts receivable increased by $20,000. The 2010 "cash receipts from customers" would be

  Compute equivalent units of production for conversion costs

Compute equivalent units of production for materials and for conversion costs. For each plant determine the unit costs of production.

  Profit is the difference between in the incoming cash

Profit is the difference between in the incoming cash and outgoing cash the amounts received from customers for goods or services and the amounts paid

  How would the accounting for the awards change

How would the accounting for the awards change if the modification to the terms of the award was made on January 1, 2014, after awards have become fully vested?

  Determine whether the control is operating effectively

For each of the controls described above, briefly state the purpose of the control and describe a test to determine whether the control is operating effectively

  What transfer price would you recommend and why

What transfer price would you recommend if the Battery Division is now selling 1,000,000 batteries a year to retail outlets

  Discuss the manager expects to produce next year

Required Compute the number of units that the manager expects to produce next year

  Provide the necessary journal entries

During 2019 Gem Limited explores three areas and incurs the following costs: Provide the necessary journal entries using the area-of-interest method

  What loss would be recognized on the called bonds

Didde Company issues 25,000,000 face value of bonds at 96 on January 1, 2016. What loss would be recognized on the called bonds on September 1, 2019

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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