chpt 14 HW solutions

chpt 14 HW solutions - Individual Tax Accounting 2011...

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Individual Tax Accounting – 2011 edition Chapter 14 Homework Solutions 29. Cost $200,000 Add: Paving and sidewalks ($7,000 + $8,000) $15,000 Elevator ($20,000 – $13,000) 7,000 22,000 Subtotal $222,000 Deduct: Depreciation deductions claimed $ 4,500 Casualty insurance proceeds 13,500 Casualty loss allowed 5,500 (23,500) Adjusted basis $198,500 Amount realized ($290,000 – $17,400) $272,600 Less: Adjusted basis (198,500) Realized gain $ 74,100 pp. 14-4 to 14-6, Example 5, and Concept Summary 14.2 44. a. Basis for gain = $40,000; $92,000 (amount realized) – $40,000 (adjusted basis) = $52,000 (recognized gain). b. Basis for gain = $22,000; $40,000 (amount realized) – $22,000 (adjusted basis) = $18,000 (recognized gain). c. Basis for loss = $15,000; $9,000 (amount realized) – $15,000 (adjusted basis) = $6,000 (recognized loss). d. $0. The proceeds of $35,000 are between the gain basis of $42,000 and the loss basis of $30,000. Therefore, neither gain nor loss is recognized. Examples 18 to 20
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This note was uploaded on 12/22/2010 for the course BUSACC 1242 taught by Professor Staff during the Spring '10 term at Pittsburgh.

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