danishrafique220

danishrafique220

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danishrafique220

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English1Marketing1Algebra1Computer Science2Accounting4
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John borrowed $4,500 to purchase a machine. He later borrowed$2,000 using the machine as collateral. Both notes are nonrecourse.Ten years later, the machine has an adjusted basis of zero and twooutstanding not balances of $2,500 and $800. John sells the machinesubject to the two liabilities for $1,000. What is his realizedgain or loss?​

a.

​None of the above.

b.

​$4,300

c.

​$0.

d.

​$3,300.

e.

​$1,000.

10 points

QUESTION 2

Angelica purchases a house for $165,000. She converts theproperty to rental property when the fair market value is $140,000.After deducting depreciation (cost recovery) expense of $3,130, shesells the house for $100,000. What is her recognized gain orloss?​

a.

​($65,000).

b.

​($36,870).

c.

​None of the above.

d.

​$0.

e.

​($62,870).

10 points

QUESTION 3

Olivia and Matthew exchange real estate in a like-kind exchange.Olivia's basis in the real estate, subject to a $100,000 mortgage,is $250,000 and the fair market value is $400,000. She receivesreal estate with a fair market value of $300,000 and Matthewassumes the mortgage. What is Olivia's recognized gain and adjustedbasis for the real estate received?​

a.

​None of the above.

b.

​$50,000, $400,000.

c.

​$100,000, $250,000.

d.

​$100,000, $400,000.

e.

​$0, $250,000.

10 points

QUESTION 4

On October 1, Denise exchanged an apartment building (adjustedbasis of $575,000 and subject to a mortgage of $325,000) foranother apartment building owned by Quinn (fair market value of$850,000 and subject to a mortgage of $325,000). The propertytransfers were made subject to the outstanding mortgages. Whatamount of gain should Denise recognize?​

a.

​$0.

b.

​$50,000.

c.

​None of the above.

d.

​$225,000.

e.

​$275,000.

10 points

QUESTION 5

Maple, Inc., owns a delivery truck which initially cost $40,000.After depreciation of $25,000 had been deducted, the truck wastraded-in on a new truck that cost $50,000. Maple was required topay the car dealer $20,000 in cash. What is Maple's basis for thenew truck assuming the exchange qualifies for §1031 treatment?​

a.

​$0.

b.

​$15,000.

c.

​$35,000.

d.

​$50,000.

e.

​None of the above.

10 points

QUESTION 6

Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam had anadjusted basis in the property of $40,000. Assume that Aaron soldthe property on June 20, 2016 for $90,000.

What amount should Aaron use for his basis?

a.

​$90,000

b.

​$40,000

c.

​None of the above

d.

​$0

e.

​$35,000

10 points

QUESTION 7

Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam had anadjusted basis in the property of $40,000. Assume that Aaron soldthe property on June 20, 2016 for $90,000.

​

What amount of gain/(loss) should Aaron recognize on thesale?​

a.

​None of the above

b.

​$55,000

c.

​$50,000

d.

​$40,000

e.

​$90,000

10 points

QUESTION 8

Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam had anadjusted basis in the property of $40,000.

​

What amount of gain/(loss) should Aaron recognize assuming hesold the property for $36,500 on 6/20/16?

a.

​None of the above.

b.

$1,500 ​Short-term capital gain

c.

​$0

d.

​$3,500 Short-term capital loss

e.

​$1,500 Long-term capital gain

10 points

QUESTION 9

Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $35,000. Miriam hadacquired the property in 1988 and had an adjusted basis in theproperty of $40,000.

​

What amount of gain/(loss) should Aaron recognize assuming hesold the property for $30,000 on 6/20/16?

a.

​($5,000) Short-term Loss.

b.

​No Gain or Loss recognized.

c.

​None of the above

d.

​($10,000) Short-term Loss.

e.

​($10,000) Long-term Loss.

10 points

QUESTION 10

Miriam gifted property to her brother Aaron on January 25, 2016at which time it had a fair market value of $90,000. Miriamacquired the property in 1966 and had an adjusted basis in theproperty of $40,000.

​

What amount of gain/(loss) should Aaron recognize assuming hesold the property for $100,000 on 6/20/16?

a.

​$10,000 Long-term capital gain.

b.

​None of the above.

c.

​$10,000 Short-term capital gain.

d.

​$60,000 Long-term capital gain.

e.

​$60,000 Short-term capital gain.

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