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BUSA427_Chapter11.docx - Chapter 11 Ch. 11: Question 21 a....

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Chapter 11Ch. 11: Question 21a. Leonard and Linda’s excluded gain is $220,000 since it does not exceed the $500,000limit for married filing jointly. They must recognize $220,000. This can be calculated asfollows:$100,000Cost$350,000Realized Amount$30,000Improvements($130,000)Basis$130,000Basis$220,000Gainb. Leonard and Linda’s excluded gain is $370,000 since it does not exceed the $500,000limit for married filing jointly. They must recognize $370,000. This can be calculated asfollows:$100,000Cost$700,000Realized Amount$200,000New Purchase($330,000)Basis$30,000Improvements$370,000Gain$330,000Basisc. Leonard and Linda would recognize a $50,000 loss. This can be calculated as follows:$100,000Cost$80,000Realized Amount$30,000Improvements($130,000)Basis$130,000Basis$50,000Loss
Ch. 11: Question 29The exchanges that qualify as a like-kind exchange are:
Ch. 11: Question 33a. Emma’s realized gain is $5,000 and her recognized gain is $5,000. Her basis in the newproperty is $23,000. This can be calculated as follows:$23,000FMV$25,000Old Basis$7,000Boot($7,000)Boot$30,000$5,000Gain($25,000)
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Term
Fall
Professor
fabioambrosio
Tags
Accounting, basis, Apartment, The new black

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