Daniella exchanges business land with a $100,000 adjusted basis for $10,000 cash and business land with a $96,000 FMV. What is the amount of gain recognized on the exchange?
A) $0
B) $4,000
C) $6,000
D) $10,000
C) $6,000
This transaction qualifies as a like-kind exchange with boot received. Amount Realized ($10,000 + $96,000) - Adjusted Basis ($100,000) = $6,000 gain realized. Gain recognized to the lesser of realized gain ($6,000) or boot received ($10,000).
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Finnish Motors has the following balance sheet accounts: Land$150,000 Equipment 90,000 Salaries Payable 12,000 Notes Payable 99,000 Supplies 10,000 Cash 25,000 Common Stock 40,000 Retained Earnings 100,000 Accounts Payable ? Prepaid Rent ? If the company has total liabilities and stockholders' equity of $290,000, what is the balance of the company's Prepaid Rent account?
A. $25,000. B. $15,000. C. $39,000. D. $12,000.
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Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)