AC553 Week 4 Assignment

AC553 Week 4 Assignment - Homework Solutions Week #4...

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Unformatted text preview: Homework Solutions Week #4 Question 10-1 Realized gain or loss is the difference between the amount realized from the sale or other disposition of property and the adjusted basis at the time of sale or disposition. If the amount realized exceeds the adjusted basis, there is a realized gain. If the adjusted basis exceeds the amount realized, there is a realized loss. If a realized gain or loss is recognized, the gain is includible and the loss is deductible in determining taxable income. Thus, recognition'' means that the result of a particular transaction is considered to be taxable income or a deductible loss. Question 10-47 Gross profit rate is $60,000/$80,000 = 75% 2009: 75% $20,000 = $15,000 2010-2013: 75% $15,000 = $11,250 Prob 11-40 a . S id n e y h a s $ 1 6 0 ,0 0 0 re alize d g a in a n d , a s s u m in g h e m a k e s th e e le c tio n , n o re c o g n ize d g ain b e c a u se th e p u rc h a s e p ric e o f th e re p la c em e n t p ro p e rty w a s g re a ter th a n th e c o n d e m n a tio n aw ard . T h e re p la c em e n t p ro p e rty w a s g re a ter th a n th e c o n d e m n a tio n aw ard ....
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AC553 Week 4 Assignment - Homework Solutions Week #4...

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