What is Tom basis in the land

Assignment Help Accounting Basics
Reference no: EM132670409

Problem - Juliana purchased land three years ago for $50,000. She gave the land to Tom, her brother, in the current year, when the fair market value was $70,000. No gift tax is paid on the transfer. Tom subsequently sells the property for $63,000.

Required -

a. What is Tom's basis in the land, and what is his realized gain or loss on the sale?

b. Assume instead that the land has a fair market value of $45,000 and that Tom sold the land for $43,000. Now what is Tom's basis in the land, and what is his realized gain or loss on the sale?

Reference no: EM132670409

Questions Cloud

Regarding healthy home environments : Knowing the particularities of your locale, specify three additional questions that you should address regarding healthy home environments.
Describe the business ethics issues and definitions : Describe the business ethics issues and definitions, theories, and frameworks important to organizational ethical decision making and the role of a human.
What is Ashley adjusted basis of the property : The property's fair market value was $4,500,000 at the date of death and $4,800,000 six months. What is Ashley adjusted basis of the property
Public health care problems : Are the local and national health care providers adequately responding to the needs of people suffering from mental disorders?
What is Tom basis in the land : No gift tax is paid on the transfer. Tom subsequently sells the property for $63,000. What is Tom basis in the land
Risk of endometrial cancer : Researcher A conducts a case-control study to explore the consumption of fruits and vegetables and the risk of endometrial cancer.
What is Heather basis in the common and preferred shares : Heather owns 400 shares of Diego Corporation common stock for which she paid $4,000. What is Heather basis in the common and preferred shares
Find listings of top fifteen health care systems : How will you find listings of the top fifteen health care systems? What are the services provided by the healthcare delivery system?
What is Sebastian basis in these two assets : Appraisals of the equipment indicate that the fair market value of the first piece of equipment is $72,000. What is Sebastian basis in these two assets

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the book value of the investment

Use this information to determine the book value of the investment that should be reported at year end by All Good Company

  Prepare journal entry on gordons books for debt settlement

Gordon Stores owes 199,800 to Centurion Company plus unpaid interest for 2019. Prepare the journal entry on Gordon's books for debt settlement

  Find the inventory turnover ratio for Roberta company

During the past six months, Roberta sold goods costing $35,500, Find the inventory turnover ratio for Roberta company

  Find out sales volume profit variance

Standard Company A company manufactures a number of products, data for one of which are shown below.

  George wilson purchased bright light industries common

george wilson purchased bright light industries common stock for 47.50 on january 31 2010. the firm paid dividends of

  What amount should a student deposit today

Tuition of $1419 will be due when the spring term begins in 5 months. What amount should a student deposit today, at 3.18%, to have enough to pay the tuition

  Calculate the amount of her failure-to-pay penalty

If Linda pays the taxes exactly 3 months late, calculate the amount of her failure-to-pay penalty. (Use two decimals places)

  Analysis of stockholders equity star corporation issued

analysis of stockholders equity star corporation issued both common and preferred stock during 19x6. the stockholders

  Alternative cost flow assumptions for inventory

Discuss and compare the 4 major alternative cost flow assumptions for inventory (specific identification, first-in, first-out, weighted average, and last-in, last-out).

  Beau brentley earned 60000 from his job at bridgestone

1 beau brentley earned 60000 from his job at bridgestone tires. he had 15 of his gross pay withheld for federal income

  An alternative available when the seller is exposed to

an alternative available when the seller is exposed to continued risks of ownership through return of the product

  Compute the current break-even point in units

Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used. Compute the margin of safety ratio.

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