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Various Accounting problems

(TCO E) Josh sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $80,000 cash and a painting with a fair market value of $20,000 from the buyer. The buyer also assumed Josh's $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of Josh's gain on the sale? (Points: 6)
1- $90,000
2- $125,000
3- $80,000
4- $70,000

(TCO I) Ben's property, which has an adjusted basis of $25,000, is condemned by the state government. The authorities replace his property with other qualified property which cost them $120,000. What is Ben's recognized gain? (Points: 6)
1- $35,000
2- $85,000
3- $120,000
4- $0

(TCO D) Sean, a calendar year taxpayer, purchased stock on June 18, 2006, for $7,000. The stock became worthless on June 4, 2007. What is Sean's loss in 2007?
1- $7,000 long-term capital loss
2- $7,000 short-term capital loss
3- No loss
4- $7,000 itemized deduction for investments

Solution Preview

1 - 70,000 =(80000+20000+25000-50000-5000)
2 - 120,000 (new property)
3 - $7,000 long-term capital loss .(Worthless securities ...

Solution Summary

The solution answer multiple question realted to Josh, Ben's property & Sean accounting situations

$2.19