What is the recognized gain or loss

Assignment Help Accounting Basics
Reference no: EM133000783

Question - Jason's house has an adjusted basis of $150,000 when he sells it for $200,000. He incurs selling expenses of $20,000 and legal fees of $2,000. He had purchased another residence one month prior to the sale for $380,000. What is the recognized gain or loss and the basis of the replacement residence if Jason elects to forgo (not use) the §121 exclusion (exclusion of gain on the sale of a principal residence)?

A. $0 and $380,000

B. $28,000 and $352,000

C. $0 and $408,000

D. $28,000 and $380,000

Reference no: EM133000783

Questions Cloud

What is the total cost of the asset : I spent $100,000 on a new machine. it cost $2000 to ship it to my office, $1000 to install it, and $500 for initital testing. What is the total cost of asset
How many units were completed and transferred : At the end of the period, Department 2 had 6000 units, which were 20 per cent complete as to conversion costs. How many units were completed and transferred
Journalize and post adjusting entries : Journalize the above transactions in a two-column journal - Cost of supplies remained unconsumed on Mar 31 is Br 900
What are the advantages of using the dual rate method : What are the advantages of using the dual rate method? How can costs of multiple support departments be allocated to operating departments
What is the recognized gain or loss : Jason's house has an adjusted basis of $150,000 when he sells it for $200,000. What is the recognized gain or loss
How much would you need to deposit : If you wish to save $1 500 000 in five years, how much would you need to deposit at the start of each quarter to achieve this goal
Calculate each project net present value : Calculate each project's net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and profitability index (PI)
List and briefly explain the different types of errors : List and briefly explain the different types of errors that are not revealed by the unadjusted trial balance. Give examples
Prepare a schedule showing a horizontal analysis : Here is financial information for Glitter Inc. Prepare a schedule showing a horizontal analysis for 2020, using 2019 as the base year

Reviews

Write a Review

Accounting Basics Questions & Answers

  During 2012 victoria group 1 received cash of 5000 billed

during 2012 victoria group 1 received cash of 5000 billed to a customer in 2011 2 earned 20000 of net income 3 paid

  Determine the after closing balance in the retained earning

Baker Company's accounting records show a $42,100 balance in its Retained Earnings account on January 1, 2013.

  During your year-end review of the accounts related to

in 2011 space technology company modified its model z2 satellite to incorporate a new communication device. the company

  Prepare journal entries to close the temporary accounts

Prepare journal entries to record the transactions for August and post them to the accounts. The company records prepaid and unearned items in balance sheet.

  Calculate the profit and loss of the futures transactions

Based on the following information, calculate the profit and loss you would make in each of the futures transactions listed in the Australian futures market.

  How much gain or loss does ray recognize

Ray was a one-third partner in RJS partnership until he received a distribution of the following assets form the partnership which reduced his interest.

  Given the following data for harder company compute cost of

given the following data for harder company compute cost of goods manufactured direct materials used 120000 beginning

  How much of the loss is suspended

How much of the $19,600 loss from ABC can Clint deduct currently, and how much of the loss is suspended because of the tax basis, at-risk

  Mchael company issued 8 bonds with a par value of 1000000

michael company issued 8 bonds with a par value of 1000000 receiving a 20000 premium. on the interest date 5 years

  How much is the income or loss from the discontinued segment

On that date, the carrying amount of the assets of Segment C was 90,000,000. how much is the income or loss from the discontinued segment

  How assets and liabilities would be computed

Explain the effects of the proposed lease standards would have on the following: How assets and liabilities would be computed.

  What gain and net reduction in retained earnings

Pierson Corporation owned 10,000 shares of Hunter Corporation. What gain and net reduction in retained earnings would result from this property dividend

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