Chap 10 Trade of Like Kind Assets Quiz

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

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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
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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?...
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This note was uploaded on 05/26/2011 for the course ACCT 5400 taught by Professor Staff during the Spring '08 term at UGA.

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