Recognized gain or loss on the sale of the house, Accounting Basics

+44 141 628 6080
[email protected]

Recognized gain or loss on the sale of the house

Alicia buys a beach house for $425,000 which she uses as her personal vacation home. She builds an additional room on the house for $45,000. She sells the property for $510,000 and pays $30,000 in commissions and $4,000 in legal fees in connection with the sale. What is the recognized gain or loss on the sale of the house?

a. $0.

b. $6,000.

c. $30,000.

d. $40,000.

e. None of the above.

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Recognized gain or loss on the sale of the house

Reference No:- TGS062644

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Buy from an outside supplier

Which of the following would not be relevant to a decision about whether to continue making a part or whether to buy it from an outside supplier?

Q : Participating preferred stock

A company is authorized to issue 50,000 shares of $50 par value, 8%, cumulative, fully participating preferred stock, and 750,000 shares of $5 par value common stock.

Q : Operating system faces

In the environment in which Barilla operated in 1990, do you believe JITD would be feasible? Effective? If so, which customer would you target next? How would you convince them that the JITD program was worth trying? If not, what alternatives woul

Q : Date of the sale and the amount realize

Sammy buys the house for $500,000 in cash, assumes her mortgage of $194,000, and pays property taxes of $4,200 for the entire year on December 1, 2011. What is Jamie's adjusted basis at the date of the sale and the amount realize?

Q : Recognized gain or loss on the sale of the house

Q : Co-insurance clause in insurance policy

Joyce's office building was destroyed in a fire (adjusted basis of $350,000; fair market value of $400,000). Of the insurance proceeds of $360,000 she receives, Joyce uses $310,000 to purchase additional inventory and invests the remaining $50,000

Q : Interest in a passive activity

Emily earns a salary of $150,000, and invests $60,000 for a 20% interest in a passive activity. Operations of the activity result in a loss of $400,000, of which Emily's share is $80,000. How is her loss characterized?

Q : Maximum amount of investment interest expense deduction

Ramon incurred $83,100 of interest expense related to his investments in 2011. His investment illcome included $34,500 of interest and a $37,500 net capital gain on the sale of securities. What is the maximum amount of Ramon's investment interest

Q : What is the adjusted basis for the land

Robert and Diane, husband and wife? live in Pennsylvania, a common law state. They purchased land as joint tenants in 2007 for $300,000. In 2011, Diane dies and bequeaths her share of the land to Robert. The land has a fair market value of $450,00

1960418

Questions
Asked

3,689

Active Tutors

1441949

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Recognized gain or loss on the sale of the house

Reference No:- TGS062644

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Buy from an outside supplier

Q : Participating preferred stock

Q : Operating system faces

Q : Date of the sale and the amount realize

Q : Recognized gain or loss on the sale of the house

Q : Co-insurance clause in insurance policy

Q : Interest in a passive activity

Q : Maximum amount of investment interest expense deduction

Q : What is the adjusted basis for the land

What are the bodies first and second line of defence

Identify which defense mechanisms are at risk

Requirement that could affect your healthcare organization

Reviewing adverse events on a hospital unit

Conduct self-reflection on your performance in the field

Why patient with dementia is no longer able to make decision

How healthcare professionals responsible for utilization

Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Recognized gain or loss on the sale of the house

Reference No:- TGS062644

Recent Questions Asked Accounting Basics

Q : Buy from an outside supplier

Q : Participating preferred stock

Q : Operating system faces

Q : Date of the sale and the amount realize

Q : Recognized gain or loss on the sale of the house

Q : Co-insurance clause in insurance policy

Q : Interest in a passive activity

Q : Maximum amount of investment interest expense deduction

Q : What is the adjusted basis for the land

Asked Questions