Dean exchanges a business storage facility with a $120,000 adjusted basis for $40,000 cash and a parking lot with a $140,000 FMV. What is the amount of gain which Dean recognizes on the exchange?
A) $0
B) $20,000
C) $40,000
D) $60,000
C) $40,000
This transaction qualifies as a like-kind exchange with boot received. Amount Realized ($40,000 + $140,000) - Adjusted Basis ($120,000) = $60,000 gain realized. Gain is recognized to the extent of boot received—$40,000.
You might also like to view...
Leno Corporation operates in three different industries each of which is appropriately regarded as a reportable segment. Segment B contributed 30% of Leno Corporation's total sales. Sales for Segment B were $350,000 and traceable costs were $200,000 . Total common costs for all segments were $500,000 . Leno allocates common costs based on the ratio of each segment's sales to total sales. What
should be the operating profit (loss) for Segment B? a. ($10,000) b. $10,000 c. -$0- d. $150,000
Distinguish between conditions and covenants
What will be an ideal response?
A(n) _____ is a self-replicating code planted illegally in a computer program for the purpose of damaging or shutting down a system or network
Fill in the blank(s) with correct word
Most companies require their employees to either take their vacation days by the end of the year or forfeit them.
Answer the following statement true (T) or false (F)