$18,900 a. $15,700 b. $26,600 c. $26,900 d. Gary and Gerdy Gray purchased a home for $125,000 on September 15, 2008. On October 7, 2009 they 64. were divorced, and as part of the divorce agreement, the home was transferred to Gerda who sold the home on October 18, 2010 for $350,000. How much can Gerda exclude? 65. of the residence but the use of the home was granted to Gerda as long as Gary owns the residence. If Gary sells the residence on October 18, 2010 for $350,000, how much can Gary exclude?
66. completely destroyed their home. The home was insured for its replacement value and homes in Peter’s area had appreciated greatly. He received proceeds of $420,000. How much does Peter include? $250,000 a. $240,000 b. $-0- c. $420,000 d. None of the above e. If Peter in the preceding problem had received proceeds of $550,000. How much gain would be recognized? 67. $-0- a. $120,000 b. $180,000 c. $375,000 d. None of the above e. How much of a replacement residence would Peter have to purchase in order to exclude or defer all gain 68. realized in the preceding problem? 69. incorrect? 70. similar property with a fair market value of $160,000. He also gave up 100 shares of Bookbinder, Inc. stock worth $25,000 with an adjusted basis of $15,000. What is Henry’s realized gain and his recognized gain? Realized gain: $10,000; Recognized gain: $10,000 a. Realized gain: $10,000; Recognized gain: $0 b. Realized gain: $45,000; Recognized gain: $10,000 c. Realized gain: $45,000; Recognized gain: $0 d. Which of the following is not an involuntary conversion? 71. Casualty a. Livestock destroyed because of disease b. Notice that property will be condemned because it is un fi t for human use c. Threat of condemnation d. Margaret Moraine exchanged a business auto that had an adjusted basis to her of $24,000 with an
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