What is the amount and character of the recognized gain

Assignment Help Accounting Basics
Reference no: EM131818434

Question - Sylva transfers to Leaf Corporation a machine she had purchased a year ago for $50,000. The machine has a $40,000 adjusted basis and a $55,000 FMV on the transfer date. $10,000 in depreciation was claimed by Silvia prior to the transfer. Silvia receives all 1,000 shares of Leaf Corporation stock worth $55,000 and a two-year note with a $5,000 FMV. What is the amount and character of the recognized gain or loss?

A) $15,000 ordinary income

B) $15,000 capital gain

C) $5,000 ordinary income

D) $5,000 capital gain

Reference no: EM131818434

Questions Cloud

Estimate of how many data points : What would be your estimate of how many data points we would need to start seeing that bell curve?
What are the possible statistical pitfalls : A U.S. Centers for Disease Control survey concluded that people who used cell phones instead of a landline appeared to double their chances of binge drinking
How does a company specify the level of aggregation : What are the advantages and disadvantages of delaying payout of performance-based pay rather than paying the reward immediately?
Consider what instructional models : Your strategies for effective teaching. Consider what instructional models, methods, and strategies you may employ as an educator.
What is the amount and character of the recognized gain : Sylva transfers to Leaf Corporation a machine she had purchased a year ago for $50,000. What is the amount and character of the recognized gain or loss
Presidential election to hillary clinton : All of the major polls predicted that Donal Trump would lost the Presidential Election to Hillary Clinton.
What crimes did howell commit : Baker and others entered a Wal-Mart store shortly after 3:00 A.M. by cutting through the metal door with an acetylene torch.
What is the present value of the annual cash flow : What is the present value of the annual cash flow that is expected in 7 years from today?
What are the possible statistical pitfalls of this : In 2007 a study of 231,000 New Jersey heart attack patients showed that those admitted on a weekday had a 12% chance of death within 3 years compared

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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