e Brenda Baines sells land to Carla Chandler for 15000 cash and a piece of

E brenda baines sells land to carla chandler for

This preview shows page 4 - 6 out of 22 pages.

e. Brenda Baines sells land to Carla Chandler for $15,000 cash and a piece of equipment with an adjusted 43. basis of $15,000 and a fair market value of $20,000. The land was subject to a $25,000 mortgage which Carla assumed. Brenda incurred $2,500 in selling expenses. What is the amount realized by Brenda? $55,000 a. $60,000 b. $52,500 c. $57,500 d. Bill Burns purchases furniture from his employer for $5,000 during 2010. The fair market value of the 44. furniture is $8,500. What is Bill’s basis in the furniture? d. Bill Burns purchases furniture from his employer for $5,000 during 2010. The fair market value of the 45. furniture is $8,500. What amount, if any, must Bill include as income for 2010? 46. stock with a fair market value at distribution of $800. Doug previously owned 100 shares of Edwards Corporation common stock which he purchased three years ago for $6,000. The basis per share of the 20 shares of Edwards Corporation stock is: 47. Corporation common stock. Freda purchased the 200 shares of common stock two years ago for $12,000. On the date of distribution, the fair market value of the common stock was $75 per share and the fair market value of the preferred was $100 per share. What is the new basis, per share, of the common stock? $75.00 a. $50.00 b. $100.00 c. $66.67 d. Freda Freemont receives a nontaxable stock dividend of 30 shares of preferred stock on her Georgia 48. Corporation common stock. Freda purchased the 200 shares of common stock two years ago for $12,000. On the date of distribution, the fair market value of the common stock was $75 per share and the fair market value of the preferred was $100 per share. What is the new basis, per share, of the preferred stock?
Image of page 4
541 Testbank Chapter 10 d. George Greco gave Harold Hudson property which George acquired five years ago for $15,000. At the 49. time of the gift, the property’s fair market value was $35,000. Harold subsequently sold the property for $40,000. What amount of gain did Harold realize? d. Kurt Kramer purchased stock five years ago for $12,000 which he gave to Jim Jensen when its fair market 50. value was $9,000. Subsequently, Jim sold the stock for $7,500. What is the amount of Jim’s loss on the sale? $3,000 a. $1,500 b. $4,500 c. $2,000 d. Kent Knobe gave Larry Lawson a gift having a fair market value of $133,000 on February 14, 2010. Kent
Image of page 5
Image of page 6

You've reached the end of your free preview.

Want to read all 22 pages?

  • Fall '12
  • ANYONE
  • fair market value

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture