chpt 15 HW solutions

chpt 15 HW solutions - Individual Tax Accounting 2011...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Individual Tax Accounting – 2011 edition Chapter 15 - Homework Solutions 35. a. Amount realized ($320,000 + $45,000) $365,000 Adjusted basis (275,000) Realized gain $ 90,000 b. Recognized gain $ 45,000 The transaction is an exchange of like-kind property (i.e., investment real estate for business real estate property) in which boot is received. Therefore, the recognized gain is the lesser of the realized gain ($90,000) or the boot received ($45,000). c. The basis of the office building is calculated as follows: Adjusted basis of land $275,000 Plus: Gain recognized 45,000 Less: Boot received (45,000) Adjusted basis of office building $275,000 or FMV of office building $320,000 Less: Postponed gain (45,000) Adjusted basis of office building $275,000 Example 11 45. a. Since Frank is an owner-investor, the taxpayer use test applies. Replacing the warehouse that is rented to various tenants with a shopping mall that is rented to various tenants in a different location qualifies as replacement property. Amount realized
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/22/2010 for the course BUSACC 1242 taught by Professor Staff during the Spring '10 term at Pittsburgh.

Page1 / 4

chpt 15 HW solutions - Individual Tax Accounting 2011...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online