ch. 15 solutions

# West Federal Taxation 2008: Individual Income Taxes, Professional Version (West's Federal Taxation: Individual Income Taxes)

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Ch. 15 29. (a) Realized Gain: 310,000 - 250,000 = 60,000 (b) Recognized Gain: 0 33. (a) Recognized Gain: 0 (b) Basis: 17,000 (c) Sell instead of trade (d) (a) Recognized: 0 (b) Basis: 17,000 (c) Nothing, the exchange is the best option 37. (a) 145,000 (b) 350,000 (c) 42,000 (d) 28,000 (e) 90,000 38 (a) Adjusted Basis + Boot 12,000 + 3,000 = 15,000 21,000 – 15,000 = 6,000 Recognized Gain (b) 18,000 – 12,000 = 6,000 Gain (c) Use the first option because adjusted basis will be lower 40. (a) (545,000 + 100,000) – 500,000 = 145,000 (b) 500,000 (c) Cash is a boot so the recognized gain is 100,000 and the basis remains the same. This is a better alternative. 41. (a) Realized: (12,000 + 4,000) - 7,000 = 9,000 Recognized: 4,000 Deferred: 5,000 (b) Realized: 15,000 – (14,000 + 2,000) = 1,000 loss Recognized: 0 Deferred: (1,000) (c) Realized: 8,500 – (7,000 + 3,000) = 1,500 loss Recognized: 0 Deferred: (1,500) (d) Realized: 10,000 Recognized: 0 Deferred: 10,000 (e) Realized: (11,000 + 1,000) – 10,000 = 2,000 Recognized: 1,000 Deferred: 1,000 (f) Realized: 2,000 loss Recognized: 0

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ch. 15 solutions - Ch 15 29(a Realized Gain 310,000 250,000...

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