# Lo 3 for each of the following independent

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Problem 6-54 (LO. 3)For each of the following independent transactions, calculate the recognized gain or loss to the seller and the adjusted basis to the buyer.Note: If an amount is zero, enter "0."Seller's Recognized
Gain/Lossa. Bonnie sells Parchment, Inc. stock (adjusted basis \$17,000) to Phillip, her brother, for its fair market value of \$12,000.
b. Amos sells land (adjusted basis \$85,000) to his nephew, Boyd, for its fair market value of \$70,000.
c. Susan sells a tax-exempt bond (adjusted basis \$20,000) to her wholly owned corporation for its fair market value of \$19,000.
d. Ron sells a business truck (adjusted basis \$20,000) that he uses in his sole proprietorship to his cousin, Agnes, for its fair market value of \$18,500.
e. Martha sells her partnership interest (adjusted basis \$175,000) in Pearl Partnership to her adult daughter, Kim, for \$220,000.
8.
Your answer:Problem 6-44 (LO. 3)Alex, who is single, conducts an activity in 2015 that is appropriately classified as a hobby. The activity produces the following revenues and expenses:Revenue\$18,000Property taxes3,000Materials and supplies4,500Utilities2,000Advertising5,000Insurance750Depreciation4,000Without regard to this activity, Alex's AGI is \$42,000 and his personal exemption is \$4,000.
Complete the following statements regarding the treatment of the hobby activities.Alex reportsthe gross hobby revenueon page 1 of the Form 1040. Excluding the property taxes, his total deductible expenses (before any AGI limitations) is limited to \$blank. Alex's reportable netincomefrom the hobby on his tax return is \$blankand his overall taxable income is \$blank.9.
A realized gain of \$30,000, with \$6,000 recognized as a gain for tax purposes.A recognized and realized loss of \$8,000.There is no recognized gain to Ridge and the \$10,000 of unrecognized loss is permanently lost.
losses160000disallowed lossreducean unrelated partyYour answer:Problem 6-52 (LO. 3, 4)Brittany Callihan sold stock (basis of \$184,000) to her son, Ridge, for \$160,000, the fair market value.a. What are the tax consequences to Brittany?
b. What are the tax consequences to Ridge if he later sells the stock for \$190,000?