{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chap 10 Trade of Like Kind Assets Quiz

Chap 10 Trade of Like Kind Assets Quiz - $30,000 C What is...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Alvin sells machine A (FMV 120K, Cost 110K, Accumulated Depreciation 35K) to randy for machine B (FMV 90K, Adjusted Basis 80K). Randy also assumed Alvin’s mortgage of 30K. The machines are in the same 7 year asset class, and both are used in business. A) What is Alvin’s realized gain or loss $45,000 B) What is Alvin’s recognized gain or loss
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $30,000 C) What is Alvin’s basis in machine B $75,000 D) What is Randy’s basis in machine A $110,000 (120,000 – Randy’s deferred 10,000 gain) Assume instead that Alvin sold machine A for 120 cash. E) What is the amount and character of Alvin’s recognized gain/loss, if any?...
View Full Document

{[ snackBarMessage ]}