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chapter 10 problems - Chapter 10 Problems...

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12) Gifts made after 1976, the basis should be increased by the portion of gift tax that is attributable to the net appreciation in value of the gift. For Gifts made prior to 1977, the full amount of the gift tax is added to the donor's adjusted basis, but the basis may not be increased above the fair market value at the date of the gift. 22) cost of purchase of building in 1991 630,000 sale of building in 2011 950,000 cost of windows and doors repla 60,000 cost of paint 15,000 cost of elevator 90,000 depreciation 20years 400,000 a) basis of building at time of sale 395,000 b) realized gain 555,000 c) recognized gain 555,000 24) 641.0256 basis of building in 2011 948717.9 25) purchase of taxable bond Jan 1 2010 110,000 face value of bond 100,000 sale of bond dec 31 2011 104,000 loss 6,000 26) $750 27) a) gain realized from sale of stock so gain recognized $2,000 b) gain realized from sale of car so gain recognized $2,000 c) loss realized from sale of residence loss recognized $10,000 28) total purchase 630,000 FMV of land 125,000 17.86% FMV of bulding 500,000 71.43% FMV of truck 1 25,000 3.57% FMV of truck2 50,000 7.14% 700,000 basis for land 112500 building 450000 truck 1 22500 truck 2 45000 2400 29) common stock share owned 120 purchase price on Jun 10 2010
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