ACC_4301_Fall_2009 - Individual Income Taxation Saturday...

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Individual Income Taxation Saturday 11:30 A.M. – 2:15 P.M. Name ___________________________________________ Date ___________________ True/False 1. Realized gain or loss is measured by the difference between the amount realized from the sale or other disposition of property and the property’s adjusted basis at the date of disposition. ________ 2. Molanda sells a parcel of land for $18,000 in cash and the buyer assumes Molanda’s mortgage of $12,000 on the land. Molanda’s amount realized is $30,000. ________ 3. Gains and losses on nontaxable exchanges are deferred because the tax law recognizes that nontaxable exchanges result in a change in the form but not the substance of the taxpayer’s relative economic position.________ 4. The tax law requires that capital gains and losses be separated from other types of gains and losses because an alternative tax calculation may be used when taxable income includes net long-term capital gain. ________ 5. Section 1231 applies to the sale or exchange of business properties, but not to business casualties. ________ Multiple Choice 6. Albert purchased a tract of land for $140,000 in 2005 when he heard that a new highway was going to be constructed through the property and that the land would soon be worth $200,000. Highway engineers surveyed the property and indicated that he would probably get $180,000. The highway project was abandoned in 2009
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This note was uploaded on 05/06/2010 for the course ACC ACC 3301 taught by Professor Law during the Spring '10 term at University of Texas-Tyler.

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ACC_4301_Fall_2009 - Individual Income Taxation Saturday...

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