Assignment ch 10 11 and 12

Assignment ch 10 11 and 12 - Assignment week 4 10-1...

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Assignment week 4 10-1 Realized gain or loss is the difference between the amount realized from the sale or other disposition of property and adjusted basis at the time of sale or disposition. If the amount realized exceeds the adjusted basis, there is realized gain. On the other hand, if the adjusted basis exceeds the amount realized, there is realized loss. Realized gain or loss is the difference between the fair market value of the property received and the adjusted basis of property given up. Recognized gain and loss is the amount that appears on the tax return as an included income item or a deductible loss. If a realized gain or loss is recognized, the gain is includible and the loss is deductible in determining taxable income. Thus, “recognition” means that the result of a particular transaction is considered to be taxable income or a deductible loss. Generally, recognition occurs at the time of sale or exchange. 10-47
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Assignment ch 10 11 and 12 - Assignment week 4 10-1...

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