Quiz 3 Spring 11

Quiz 3 Spring 11 - ACCT 403 QUIZ 3 Spring 2011 Total Points...

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Total Points 28 ____ Less Points Missed ____ ACCT 403 Score ____ QUIZ 3 Spring 2011 NAME ________________ Directions - there are three questions worth a total of 29 points. The value of each is indicated at 1. Bill's business warehouse was destroyed by fire at a time when it was worth $350,000 and it had a basis of $180,000. The insurance company paid Bill $350,000. Six months later, he reinvested the insurance by rebuilding a new warehouse for $340,000. a. What is the amount of gain realized by Bill from this transaction? (1) b. What is the amount of gain recognized by Bill from this transaction? (2) c. What is Bill' basis in his new warehouse? (2) 2. Answer True/False to the following statements. [2 points each] a. In order to exclude gain from the sale of a personal residence, a taxpayer must replace the residence sold with a new personal residence within three years of selling the old residence. b. If a taxpayer in the construction business exchanges a large piece of construction
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Quiz 3 Spring 11 - ACCT 403 QUIZ 3 Spring 2011 Total Points...

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