Week3_Bancroft

Week3_Bancroft - Method I Basis of old property $150,000...

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40a 1920 b 310 c 960 43 Refund of $5220 45 5000 49 6733
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26 Basis is $750 Taxable income is $750 38a 7000 gain b 4500 loss c 2000 loss d no gain or loss 47 Basis per share of stock purchased on April 18, 2009: . $7 ($210 ÷ 30) Basis per share of stock purchased on September 29, 2009: $10 . $10 ($900 ÷ 90) Sale on November 28, 2009: 30 shares (all of 4-18-09 purchase) $210 18 shares (18 of 9-29-09 purchase) 180 Basis under FIFO $390 Selling price $576 Less: Basis 390 Gain $186 Sale on December 8, 2009: Selling price 188 Less: Basis (25 × $10) 250 Loss ($62) Combining the two sales: Gain 186 Loss -62 Net gain $124 56 d
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25a $120,000 b $120,000 43a Linda’s realized gain is $90,000 and her recognized gain is $40,000. The basis of her acquired property is $150,000.00 FMV of property received $200,000 Plus: Mortgage assumed by Carol 60,000 Less: Mortgage assumed by Linda 20,000 Total consideration received $240,000 Less: Adjusted basis 150,000 Gain realized $90,000 Gain recognized ($60,000 - $20,000) $40,000
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Unformatted text preview: Method I: Basis of old property $150,000 Plus: Gain recognized 40,000 Plus: Mortgage assumed by Linda 20,000 Less: Mortgage assumed by Carol 60,000 Basis of new property $150,000 Method II: FMV of property received $200,000 Less: Deferred gain 50,000 Basis of new property $150,000 b Carol’s realized gain is $60,000 and her recognized gain is $0. The basis of her acquired property is $180,000.00 FMV of property received $240,000 Plus: Mortgage assumed by Linda 20,000 Less: Mortgage assumed by Carol 60,000 Total consideration received $200,000 Less: Adjusted basis 140,000 Gain realized $60,000 Gain recognized $0 It is as if Carol is in a “boot-given” situation. Method I: Basis of old property $140,000 Plus: Mortgage assumed by Carol 60,000 Less: Mortgage assumed by Linda 20,000 Basis of new property $180,000 Method II: FMV of property received $240,000 Less: Deferred gain 60,000 Basis of new property $180,000...
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Week3_Bancroft - Method I Basis of old property $150,000...

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