Purchase Solution

Realized vs recognized gain on sale, adjusted basis

Not what you're looking for?

Ask Custom Question

1. On November 4, 2008, Ezra purchased 2,000 shares of DDD stock for $12,000. On June 12, 2010, Ezra sold the 2,000 shares for $9,000. On June 30, 2010, he purchased 1,000 shares of DDD stock for $5,000. What is Ezra's realized gain or loss and his recognized gain or loss on the June 12, 2010 sale? What is his basis in the stock from the June 30 purchase?

2. Irving sold Blackacre (investment real estate) for $50,000 cash and the buyer assumed Irving's $17,000 mortgage on the property. Irving paid a realtor commission of $2,000 on the sale. What is Irving's recognized gain or loss on the sale if Blackacre has an adjusted basis of:

a. $63,000
b. $32,000

3. Phillip exchanges a building valued at $500,000 for land also valued at $500,000 in a qualifying like-kind exchange. That building has a basis of $230,000. What are Peter's recognized gain or loss and his basis in the land?

Please use Excel.

Purchase this Solution
Solution Summary

This solution illustrates realized vs recognized gain on sale, adjusted basis, and like kind exchange.

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

View More Free Quizzes
Related BrainMass Solutions

  • Non-taxable Exchanges

    Tonya gave Nancy a yacht used in her business with an adjusted basis of $250,000 and a fair market value of $360,000. What is Tonya's realized and recognized gain? Question 12 answers a. $310,000 realized and $310,000 recognized gain. b.

  • Tax Implications of a Like-kind Exchange

    IRC section 1011(a) states that "The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall be the excess of the

  • Tax effects of sale or exchange of a commercial building

    The realized gain is calculated as FMV of property received of $545,000, plus assumption of debt of $100,000 = $645,000 less the adjusted basis of the warehouse = $145,000. Recognized gain is $100,000 (because of the debt relief). b.

  • Realized gain or loss

    What are Virginia's realized and recognized gain or loss? b. What is Virginia's basis in the new residence? 61. On January 1, 2009, Myron sells stock that has a $50,000 FMV on the date of the sale (basis $75,000) to his son Vernon.

  • Capital Gains and losses

    What are the nature and the amount of gain or loss on the sale? On what tax form would the gain or loss be reported?

  • Realization of Gain or Loss

    Question A Realized gain = $160,000 - $84,000 = 76,000 The gain from the sale or other disposition of property shall be the excess of the amount realized therefrom over the adjusted basis provided in section 1011 for determining gain, and the loss shall

  • Sale of Home Rules

    What is their recognized gain on the sale of the residence if they use the § 121 exclusion (exclusion of gain on sale of principal residence) and if they elect to forgo the § 121 exclusion?

  • Marta and Luka: gain or loss

    Calculate Luka's realized gain or loss, recognized gain or loss, and deferred gain or loss on all parts of the transaction. Realized gain is $20,000 Recognized gain is $20,000 Deferred gain is -0- d.

  • Explain how to record the sale of trading securities.

    The interest accrued on the held-to-maturity security is recorded on an annual basis. An available-for-sale security is adjusted for market value.

View More Related Solutions