Exam 9: Acquisitions of Property

Determine the proper classification(s)of the asset discussed in the following scenario: Victoria purchased a new show case saw for her antique business. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

(Multiple Choice)

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Question 61

Randall is given five acres of land in 2005.At the time of the gift,the land had a fair market value of $182,000,and its adjusted basis to the donor was $160,000.What is Randall's gain if he sells the land for $184,000?

(Essay)

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Question 62

During 2006,Charles purchased 1,000 shares of Ryan Corporation stock for $12,000.On February 22,2016,he sells all the shares for $9,000.On March 15,2016,he repurchases 1,000 shares of Ryan for $8,000 and holds them until May 29,2016,when he sells them for $10,000.What is Charles' recognized gain or loss on the May 29,2016,sale?

(Multiple Choice)

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Question 63

Determine the proper classification(s)of the asset discussed in the following scenario: Jack bought a new table saw for his home. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

(Multiple Choice)

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Question 64

Match each statement with the correct term below. -Indirect purchase

(Multiple Choice)

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Question 65

Oscar buys a 10% interest in Britanny Corporation paying $92,000 cash on January 1,2015.During 2015,Britanny Corporation reports a loss of $30,000 and pays cash dividends to shareholders of $10,000.For 2016,Britanny Corporation has a loss of $60,000 and pays cash dividends of $20,000.If Britanny Company is organized as an S Corporation,Oscar's basis in the Britanny Corporation stock at the end of 2016 is:

(Multiple Choice)

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Question 66

Determine the proper classification(s)of the asset discussed in the following scenario: Judge Ruiz purchased a new brass-trimmed gavel to use in her courtroom. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

(Multiple Choice)

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Question 67

Match each statement with the correct term below. -Adjusted basis

(Multiple Choice)

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Question 68

Match each statement with the correct term below. -Split basis

(Multiple Choice)

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Question 69

Rosie inherits 1,000 shares of Northern Skies Airline Corporation stock from the estate of her Uncle Tony.Tony died on July 2,2016.The stock's value on July 2,2016,is $4,000.Tony's basis in the stock was $3,000.The stock has a fair market vale of $7,000 on October 1,2016,when it is transferred to her.Rosie sells the stock October 11,2017.What is Rosie's basis in the stock?

(Multiple Choice)

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Question 70

On July 3,2016,Cynthia receives a gift of a collection of books valued at $10,000.The books have an adjusted basis of $6,000 to the donor.They had been purchased in 2005.Several months after receiving the gift,Cynthia sells the books to a professional collector for $9,000.How is Cynthia's holding period for the books determined?

(Multiple Choice)

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Question 71

Dana purchases an automobile for personal use for $27,000.After using it for three years,Dana converts the automobile to business use when the fair market value is $19,000.What is Dana's basis for depreciation purposes?

(Multiple Choice)

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Question 72

Terri owns 1,000 shares of Borneo Corporation common stock.On March 31 of the current year,when the stock is trading at $2 per share,Borneo declares a 5% stock dividend with the option to receive $2 cash per dividend share in lieu of taking the dividend shares.The dividend is distributed on April 30.Terri elects to receive the stock shares rather than the cash dividend.What are the tax effects for Terri? I.Terri's stock dividend is nontaxable. II.Terri's basis in her new shares is $100.

(Multiple Choice)

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Question 73

The general rule for determining the basis of inherited property is that the basis in the hands of the heir is its fair market value at the date of death or at the alternative valuation date.

(True/False)

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Question 74

Pedro purchased all of the stock of Regis Corporation.Since he purchased all of the stock the basis in all of the corporation's assets must be restated to fair market value.

(True/False)

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Question 75

Sara constructs a small storage shed for resale to customers and incurs the following costs:

(Essay)

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Question 76

Dustin buys 200 shares of Monroe Corporation common stock on December 1,2015,for $2,000.He buys an additional 200 shares for $1,800 on December 23,2016.On December 28,2016,Dustin sells the first 200 shares for $1,700.He sells the last 200 for $1,600 on June 15,2017.What is (are)the amount(s)and the year of recognition of losses that Dustin can recognize?

(Short Answer)

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Question 77

Match each statement with the correct term below. -Basis

(Multiple Choice)

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Question 78

On June 10,2015,Wilhelm receives a gift of gold coins with a fair market value of $10,000.The gold coins had an adjusted basis of $12,000 to the donor.Wilhelm sells the gold coins August 1,2016,for $8,000.What is the amount of the recognized gain or loss on the sale?

(Multiple Choice)

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Question 79

Larry gives Linda 300 shares of stock he had purchased several years ago for $8,000.On the date of the gift,the stock has a fair market value of $6,000.Linda sells the 300 shares for $5,500 one month after the gift,Linda realizes a

(Multiple Choice)

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Question 80

Showing 61 - 80 of 105

Determine the proper classification(s)of the asset discussed in the following scenario: Victoria purchased a new show case saw for her antique business. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

Randall is given five acres of land in 2005.At the time of the gift,the land had a fair market value of $182,000,and its adjusted basis to the donor was $160,000.What is Randall's gain if he sells the land for $184,000?

Determine the proper classification(s)of the asset discussed in the following scenario: Jack bought a new table saw for his home. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

Match each statement with the correct term below. -Indirect purchase

Determine the proper classification(s)of the asset discussed in the following scenario: Judge Ruiz purchased a new brass-trimmed gavel to use in her courtroom. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

Match each statement with the correct term below. -Adjusted basis

Match each statement with the correct term below. -Split basis

Dana purchases an automobile for personal use for $27,000.After using it for three years,Dana converts the automobile to business use when the fair market value is $19,000.What is Dana's basis for depreciation purposes?

The general rule for determining the basis of inherited property is that the basis in the hands of the heir is its fair market value at the date of death or at the alternative valuation date.

Pedro purchased all of the stock of Regis Corporation.Since he purchased all of the stock the basis in all of the corporation's assets must be restated to fair market value.

Sara constructs a small storage shed for resale to customers and incurs the following costs:

Match each statement with the correct term below. -Basis

On June 10,2015,Wilhelm receives a gift of gold coins with a fair market value of $10,000.The gold coins had an adjusted basis of $12,000 to the donor.Wilhelm sells the gold coins August 1,2016,for $8,000.What is the amount of the recognized gain or loss on the sale?

Larry gives Linda 300 shares of stock he had purchased several years ago for $8,000.On the date of the gift,the stock has a fair market value of $6,000.Linda sells the 300 shares for $5,500 one month after the gift,Linda realizes a

Federal Income Taxation-An Overview

Income Tax Concepts

Income Sources

Income Exclusions

Introduction to Business Expenses

Business Expenses

Losses-Deductions and Limitations

Taxation of Individuals

Cost Recovery on Property: Depreciation, depletion, and Amortization

Property Dispositions

Non-Recognition Transactions

Choice of Business Entity-General Tax and Nontax Factorsformation

Choice of Business Entity-Operations and Distributions

Choice of Business Entity-Other Considerations

Tax Research

Filters

Exam 9: Acquisitions of Property

Determine the proper classification(s)of the asset discussed in the following scenario: Victoria purchased a new show case saw for her antique business. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property. ​

Randall is given five acres of land in 2005.At the time of the gift,the land had a fair market value of $182,000,and its adjusted basis to the donor was $160,000.What is Randall's gain if he sells the land for $184,000?

Determine the proper classification(s)of the asset discussed in the following scenario: Jack bought a new table saw for his home. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property. ​

Match each statement with the correct term below. -Indirect purchase

Determine the proper classification(s)of the asset discussed in the following scenario: Judge Ruiz purchased a new brass-trimmed gavel to use in her courtroom. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property. ​

Match each statement with the correct term below. -Adjusted basis

Match each statement with the correct term below. -Split basis

Dana purchases an automobile for personal use for $27,000.After using it for three years,Dana converts the automobile to business use when the fair market value is $19,000.What is Dana's basis for depreciation purposes?

The general rule for determining the basis of inherited property is that the basis in the hands of the heir is its fair market value at the date of death or at the alternative valuation date.

Pedro purchased all of the stock of Regis Corporation.Since he purchased all of the stock the basis in all of the corporation's assets must be restated to fair market value.

Sara constructs a small storage shed for resale to customers and incurs the following costs:

Match each statement with the correct term below. -Basis

On June 10,2015,Wilhelm receives a gift of gold coins with a fair market value of $10,000.The gold coins had an adjusted basis of $12,000 to the donor.Wilhelm sells the gold coins August 1,2016,for $8,000.What is the amount of the recognized gain or loss on the sale?

Larry gives Linda 300 shares of stock he had purchased several years ago for $8,000.On the date of the gift,the stock has a fair market value of $6,000.Linda sells the 300 shares for $5,500 one month after the gift,Linda realizes a

Federal Income Taxation-An Overview

Income Tax Concepts

Income Sources

Income Exclusions

Introduction to Business Expenses

Business Expenses

Losses-Deductions and Limitations

Taxation of Individuals

Cost Recovery on Property: Depreciation, depletion, and Amortization

Property Dispositions

Non-Recognition Transactions

Choice of Business Entity-General Tax and Nontax Factorsformation

Choice of Business Entity-Operations and Distributions

Choice of Business Entity-Other Considerations

Tax Research

Filters

Determine the proper classification(s)of the asset discussed in the following scenario: Victoria purchased a new show case saw for her antique business. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

Determine the proper classification(s)of the asset discussed in the following scenario: Jack bought a new table saw for his home. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.

Determine the proper classification(s)of the asset discussed in the following scenario: Judge Ruiz purchased a new brass-trimmed gavel to use in her courtroom. I.Personal use property. IV.Intangible property. II.Business use property. V.Real estate. III.Tangible property. VI.Personal property.