User Account

All Pages

What is the deferred gain or loss

Assignment Help Accounting Basics
Reference no: EM131699083

Question 1: Jane has a machine with an adjusted basis of $15,000 and value of $40,000. She exchanges the machine in a qualifying like-kind exchange for a machine also valued at $40,000.

1. Does Jane have a gain or loss? What is her basis in the machine acquired?

2. Assume that Jane exchanges the machine for a new one. She is given a $16,000 trade allowance, and pays $20,000 in cash. Does she have a gain or loss? What is her basis in the machine acquired?

Question 2: Smith Couriers, Inc. exchanges 3 delivery trucks valued at $80,000 and with a basis of $50,000 for 3 different delivery trucks with a fair market value of $60,000. Because the acquired trucks had a lower fair market value, Smith receives $10,000 in cash.

1. What is the gain or loss?

2. What is the deferred gain or loss?

3. What is the basis in the 3 acquired trucks?

Question 3: Jaime's home was completely destroyed by flooding in 2016. He purchased the home in 2010 for $175,000 including $50,000 allocated for the land.

1. What is Jaime's loss (assuming he had no insurance)?

2. If Jaime's adjusted gross income is $80,000, what is his deductible loss?

3. Assume Jaime had insurance and received $160,000 in insurance proceeds to rebuild his home. What is his realized gain or loss?

4. What is the recognized gain or loss if he elects to build a smaller home and only uses $120,000 of the insurance proceeds to build the replacement home?

Question 4: Denver Corporation sells the following equipment and warehouse on June 3, 2016:

Item Cost Date Acquired Depreciation Selling Price Equipment

90,000 2012 60,000 40,000 Machine

120,000 2013 10,000 145,000 Warehouse

600,000 2014 65,000 640,000

1. What is the gain or loss for each asset? Be sure to identify the character.

2. What is the total of each type of gain or loss? How will these affect Denver Corporation's net income?

Reference no: EM131699083

Questions Cloud

Discuss a discussion of american foreign policy generally : Draw from material in the following video for a discussion of American foreign policy generally
What is the amount and character recognized by terrelle : What is the amount and character (capital gain or dividend) recognized by Terrelle because of the stock redemption
Understanding multi-cultural teams in the workplace : As the diversity manager of a global company, you have developed a deep appreciation for the importance of understanding multi-cultural teams in the workplace.
What are the major public policy issues in pricing : What are the major public policy issues in pricing? Does Amazon practice predatory pricing or just good competitive marketing?
What is the deferred gain or loss : Smith Couriers, Inc. exchanges 3 delivery trucks valued at $80,000, What is the deferred gain or loss? What is the basis in the 3 acquired trucks
Identify a grant funded program : Identify a grant funded program that was implemented by a criminal justice agency in the last five years.
Explain how much will you charge for your product or service : Explain How much will you charge for your product or service? How many units of the product or service do you anticipate being able to sell over the first year?
Advertising campaign that captures your interest : Look for an advertising campaign that captures your interest. It can be a TV ad or one from social media. Write up a summary of this campaign.
Consultant do to solve the cross-cultural problems : What, specifically, should American consultant do to solve the cross-cultural problems? Write up 1-2pages Essay.

Reviews

Write a Review

Accounting Basics Questions & Answers

  The following costs are included in recent summary of data

the following costs are included in a recent summary of data for a company advertising expense 85000 depreciation

  The production budget for the next four months is july 5000

albertville inc produces leather handbags. the production budget for the next four months is july 5000 units august

  Quality marble inc

On January 29, Quality Marble Inc., a marble contractor, issued for cash 75,000 shares of $10 par common stock at $23, and on May 31, it issued for cash 100,000 shares of $4 par preferred stock at $6.

  Analyze the advantages and disadvantages of each method

Analyze the advantages and disadvantages of each method. Provide support for your response.

  Richard exchanges a building with a fmv of 75000 a basis

richard exchanges a building with a fmv of 75000 a basis of 35000 and subject to a liability of 25000 for land with a

  What are the five basic principles of cash management that

1. use this information to prepare a cash budget for the months of may and june using the template provided in doc

  There are a variety of methods of revenue recognition

Compute the revenue to be recognized in fiscal year 2010 for each of the three operating divisions of Van Hatten Industries in accordance with generally accepted accounting principles.

  Define the term cumulative preferred share

Distinguish a cumulative preferred share from a callable preferred share. Do cumulative dividend provisions and call features affect the investment merits.

  Locker rental corp lrc operates locker rental services at

locker rental corp. lrc operates locker rental services at several locations throughout the city including the airport

  What is the total contribution margin earned for optimal mix

Billings Company produces two products, Product Reno and Product Tahoe. Each product goes through its own assembly and finishing departments.

  Overall transactions on reported income

What will the effects be of the overall transactions on reported income for 2009? Why would Steinbach take these actions? Is this ethical? Why or why not? What advice would you give this accountant? Why? Is there an alternative action that is ethi..

  Discuss the meaning of foreign corrupt practices act

The Foreign Corrupt Practices Act is somewhat ambiguous. Discuss the meaning of this Act and what is allowed, not allowed, and to whom it applies. If you are working in the U.S., would this law affect you? How about in a foreign country

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