Suppose a like kind exchange takes place on October 27,2016. C gives D property which is a capital assetpurchased on April 9, 2005. D gives C property which isa capital asset purchased on March 21, 2005.
C gives D property with FMV of $200.00and Adjusted Basis of $100.00
D gives C propertywith FMV: $250.00 AdjustedBasis $70.00 and Cash $10.00
5. What is C s realized gain?
A. None
B. $260.00
C. $160
D. $0
Suppose a like kind exchange takes place on October 27,2016. C gives D property which is a capital assetpurchased on April 9, 2005. D gives C property which isa capital asset purchased on March 21, 2005.
C gives D property with FMV of $200.00and Adjusted Basis of $100.00
D gives C propertywith FMV: $250.00 AdjustedBasis $70.00 and Cash $10.00
5. What is C s realized gain?
| A. | None | |
| B. | $260.00 | |
| C. | $160 | |
| D. | $0 |
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Related questions
John borrowed $4,500 to purchase a machine. He later borrowed$2,000 using the machine as collateral. Both notes are nonrecourse.Ten years later, the machine has an adjusted basis of zero and twooutstanding not balances of $2,500 and $800. John sells the machinesubject to the two liabilities for $1,000. What is his realizedgain or loss?â
| a. | âNone of the above. | |
| b. | â$4,300 | |
| c. | â$0. | |
| d. | â$3,300. | |
| e. | â$1,000. |
10 points
QUESTION 2
Angelica purchases a house for $165,000. She converts theproperty to rental property when the fair market value is $140,000.After deducting depreciation (cost recovery) expense of $3,130, shesells the house for $100,000. What is her recognized gain orloss?â
| a. | â($65,000). | |
| b. | â($36,870). | |
| c. | âNone of the above. | |
| d. | â$0. | |
| e. | â($62,870). |
10 points
QUESTION 3
Olivia and Matthew exchange real estate in a like-kind exchange.Olivia's basis in the real estate, subject to a $100,000 mortgage,is $250,000 and the fair market value is $400,000. She receivesreal estate with a fair market value of $300,000 and Matthewassumes the mortgage. What is Olivia's recognized gain and adjustedbasis for the real estate received?â
| a. | âNone of the above. | |
| b. | â$50,000, $400,000. | |
| c. | â$100,000, $250,000. | |
| d. | â$100,000, $400,000. | |
| e. | â$0, $250,000. |
10 points
QUESTION 4
On October 1, Denise exchanged an apartment building (adjustedbasis of $575,000 and subject to a mortgage of $325,000) foranother apartment building owned by Quinn (fair market value of$850,000 and subject to a mortgage of $325,000). The propertytransfers were made subject to the outstanding mortgages. Whatamount of gain should Denise recognize?â
| a. | â$0. | |
| b. | â$50,000. | |
| c. | âNone of the above. | |
| d. | â$225,000. | |
| e. | â$275,000. |
10 points
QUESTION 5
Maple, Inc., owns a delivery truck which initially cost $40,000.After depreciation of $25,000 had been deducted, the truck wastraded-in on a new truck that cost $50,000. Maple was required topay the car dealer $20,000 in cash. What is Maple's basis for thenew truck assuming the exchange qualifies for §1031 treatment?â
| a. | â$0. | |
| b. | â$15,000. | |
| c. | â$35,000. | |
| d. | â$50,000. | |
| e. | âNone of the above. |
10 points
QUESTION 6
Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam had anadjusted basis in the property of $40,000. Assume that Aaron soldthe property on June 20, 2016 for $90,000.
What amount should Aaron use for his basis?
| a. | â$90,000 | |
| b. | â$40,000 | |
| c. | âNone of the above | |
| d. | â$0 | |
| e. | â$35,000 |
10 points
QUESTION 7
Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam had anadjusted basis in the property of $40,000. Assume that Aaron soldthe property on June 20, 2016 for $90,000.
â
What amount of gain/(loss) should Aaron recognize on thesale?â
| a. | âNone of the above | |
| b. | â$55,000 | |
| c. | â$50,000 | |
| d. | â$40,000 | |
| e. | â$90,000 |
10 points
QUESTION 8
Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam had anadjusted basis in the property of $40,000.
â
What amount of gain/(loss) should Aaron recognize assuming hesold the property for $36,500 on 6/20/16?
| a. | âNone of the above. | |
| b. | $1,500 âShort-term capital gain | |
| c. | â$0 | |
| d. | â$3,500 Short-term capital loss | |
| e. | â$1,500 Long-term capital gain |
10 points
QUESTION 9
Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam hadacquired the property in 1988 and had an adjusted basis in theproperty of $40,000.
â
What amount of gain/(loss) should Aaron recognize assuming hesold the property for $30,000 on 6/20/16?
| a. | â($5,000) Short-term Loss. | |
| b. | âNo Gain or Loss recognized. | |
| c. | âNone of the above | |
| d. | â($10,000) Short-term Loss. | |
| e. | â($10,000) Long-term Loss. |
10 points
QUESTION 10
Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $90,000. Miriamacquired the property in 1966 and had an adjusted basis in theproperty of $40,000.
â
What amount of gain/(loss) should Aaron recognize assuming hesold the property for $100,000 on 6/20/16?
| a. | â$10,000 Long-term capital gain. | |
| b. | âNone of the above. | |
| c. | â$10,000 Short-term capital gain. | |
| d. | â$60,000 Long-term capital gain. | |
| e. | â$60,000 Short-term capital gain. |
