Questions from Federal Taxation

Q: Tinh exchanges business equipment with an adjusted basis of $55,

Tinh exchanges business equipment with an adjusted basis of $55,000 (initial basis was $105,000) for business equipment worth $42,000 and $20,000 in cash. a. What is Tinh's realized gain or loss on...

Q: Armando owns a pizza parlor. Because his business is declining,

Armando owns a pizza parlor. Because his business is declining, he trades his old pizza oven in on a smaller oven that is worth $12,000. The old oven cost $30,000 and has an adjusted basis of $18,00...

Q: Leon exchanges an office building which he held as investment property for

Leon exchanges an office building which he held as investment property for a bowling alley. His office building has a basis of $175,000, a fair market value of $160,000, and is subject to a mortgage...

Q: Jose owns a warehouse in Mexico City with a basis of $

Jose owns a warehouse in Mexico City with a basis of $430,000 and a fair market value of $700,000. Lucien owns a warehouse in Boulder, Colorado with a basis of $200,000 and a fair market value of $70...

Q: Fremont Corporation and Dement Corporation exchange equipment with the following particulars.

Fremont Corporation and Dement Corporation exchange equipment with the following particulars. What are Fremont's and Dement’s realized and recognized gains or losses on the exchange...

Q: Shirley has an old tractor that has an adjusted basis of $

Shirley has an old tractor that has an adjusted basis of $9,000 and a fair market value of $5,000. She wants to trade it in on a new tractor that costs $25,000. Write a memorandum to Shirley advisin...

Q: Jerry sells his delivery truck which has a basis of $25

Jerry sells his delivery truck which has a basis of $25,000 to Tom’s Truck Company for $10,000. On the same day, he purchases a new truck from Tom’s Truck Company at a cost of $40,000. a. Does Jerry...

Q: Olga trades in a computer she had used in her trade or

Olga trades in a computer she had used in her trade or business for a new computer. The old computer cost Olga $5,300 and has an adjusted basis of $800. The computer dealer gives her a $1,200 trade-i...

Q: Return to the facts of problem 34. Two years after acquiring

Return to the facts of problem 34. Two years after acquiring the new computer, Olga sells it for $6,000. The adjusted basis of the computer is $3,800. What is the character of the recognized gain o...

Q: The chapter noted that all depreciable property is subject to the depreciation

The chapter noted that all depreciable property is subject to the depreciation recapture rules. What is the intent of the depreciation recapture rules?