What is timons basis in the note receivable

Assignment Help Accounting Basics
Reference no: EM131800086

Timon decides to sell 5 acres of land for $100,000. The cost basis for the land is $37,500. Timon agrees to sell the property for four equal payments of $25,000 - one now and the other three on January 1 of the next 3 years. The note bears adequate interest. What amount of gain is realized on the sale? What amount of gain is recognized in Year 1? What is Timon's basis in the note receivable at the end of Year 2?


c) Caleb sells machinery for $90,000 for two equal payments of $45,000 (plus interest). Caleb's original basis was $80,000 and he has claimed $30,000 of depreciation deductions up to the time of sale. Caleb will receive 1 payment now and one next year. What amount of gain is realized on the sale? What amount of gain is recognized in Year 1?

 

Reference no: EM131800086

Questions Cloud

What are the best features of the card : Take a look at the comment card that Belkin has posted online. What are the best features of the card? In what way(s) might it be improved?
Determining the constitutional convention : The compromises created in the Constitution to deal with the largest tensions at the Constitutional Convention far from settled major issues
Determine the number of days per year : Determine the number of days per year the company must the equipment to justify its purchase require if the interest rate is 8% per year.
Consultant skills justification : To identify your strengths and areas for improvement in the knowledge and skills needed to serve as an effective consultant on the Great Cups
What is timons basis in the note receivable : What is Timon's basis in the note receivable at the end of Year 2
Are campaign contribution limits now obsolete : Are campaign contribution limits now obsolete since there are several ways a campaign receive donations?
Consultant skills justification : Write a 2-3 page paper identifying and explaining the following:
Employees to the board of directors : Your consulting services have been requested by the CEO of a Fortune 500 company. The CEO is concerned about the use of the internet.
Prepare income statement for year using absorption costing : Rey Company's single product sells at a price of $234 per unit. Data for its single product for its first year of operations follow

Reviews

Write a Review

Accounting Basics Questions & Answers

  Protect businesses with copyrights and patents

With today's business's, the products they have available to their customers, there are many laws that help the business protect their product and their self's. There are many important laws that will help protect businesses with copyrights and p..

  Calculate the amount of dividends on common stock

The retained earnings balance on January 1, 2013, was $90,300. Calculate the amount of dividends on common stock during the first 11 months of 2013.

  Company net income increase

4. Harvey's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $33,000. If sales are expected to increase $60,000, by how much will the company's net income increase?

  A firm experiences demand with a mean

A firm experiences demand with a mean of 100 units per day. Lead time demand is normally distributed with mean 1000 units and standard deviation 200 units. It costs $6 to hold one unit for one year.

  What is interest cost to be included in 2011

What is the accumulated postretirement benefit obligation at the beginning of 2011?

  Contrast the application of information technology

In 1994, the New York City Police Department adopted a law enforcement crime fighting strategy known as COMPSTAT (COMPuterSTATistics). COMPSTAT uses Geographic Information Systems (GIS) to map the locations of where crimes occur, identify "hotspot..

  Prepare journal entries for the establishment of the fund

The fund is reimbursed when the cash in the fund is at $15. Prepare journal entries for the establishment of the fund and the reimbursement

  What are the tax consequences to the estate

What are the tax consequences to the estate if it redeems stock to pay off the taxes and expenses? Does it matter which stock is redeemed

  What was chipatas underapplied or overapplied overhead

Chipata Corporation applies manufacturing overhead to jobs on the basis of machine-hours. What was Chipata's underapplied or overapplied overhead for the year?

  According to the double entry system of book keeping the

1. a business event which can be measured in terms of money and must be recorded in books of accounts is calleda.

  Explain how this error affects the cost of goods sold

In taking a physical inventory at the end of year 2011, Nadir Company forgot to count certain units. Explain how this error affects the following.

  Prepare a cash budget for the next two months based on the

prepare a cash budget for the next two months based on the following information showing total cash receipts total cash

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