I have completed some of them but I am unsure if I am doing it correctly, any help would be greatly appreciated.

 

1. You transfer land with a basis of $20,000 and cash of $6,000 and receive a building with a fair market value of $35,000.

 

How much is realized gain? ___9,000___How much is recognized gain? ___9,000___basis of the building? $11,000

 

 

 

 

1. You transfer land with a basis of $43,000 and receive a building with a fair market value of $35,000 and cash of $10,000.

 

 

How much is your realized gain? _____$2,000_________________

 

How much is your recognized gain? _____$10,000_______________

 

What is the basis of the building? ______(43,000-10,000+2,000)= $35,000______________

 

 

 

1. You transfer land with a basis of $25,000, which has a mortgage attached of $9,000 and receive a building with a fair market value of $50,000 and cash of $4,000. The new owner of the land assumes your mortgage.

 

 

How much is your realized gain? ______38,000________________

 

How much is your recognized gain? ____13,000________________

 

What is the basis of the building? ____25,000________________

 

 

1. You transfer land with a basis $35,000 which has a mortgage attached of $16,000 and receive a building with a fair market value of $85,000 and an attached mortgage of $19,000. You assume the other party's mortgage and the other party assumes your mortgage.

 

 

How much is your realized gain? ______________________

 

How much is your recognized gain? ____________________

 

What is the basis of the building? ____________________

 

 

1. You transfer land with a basis of $33,000 and receive a building with a fair market value of $65,000 and an attached mortgage of $18,000 and securities with a fair market value of $7000 (basis of $5000). You assume the mortgage on the building.

 

 

Realized gain ______________________

 

Recognized gain ____________________

 

Basis of building ____________________

 

Basis of securities ____________________

 

 

1. You transfer land with a basis of $45,000 and securities with a fair market value of $4,000 (basis $1,000). You receive a building with a fair market value of $100,000 and an auto with a fair market value of $6,000.

 

 

Realized gain ________________________

 

Recognized gain ______________________

 

Basis of building ______________________

 

Basis of auto _________________________

 

 

1. You transfer land with a basis of $25,000 and securities with a fair market value of $3,000 (basis $7,000). You receive a building with a fair market value of $90,000 and an auto with a fair market value of $5,000.

 

 

Realized gain ________________________

 

Recognized gain ______________________

 

Basis of building ______________________

 

Basis of auto _________________________

 

 

 

 

1. You transfer land with a basis of $12,000 and receive a building with a fair market value of $7,000 and cash of $9,000.

 

 

Realized gain _______________________

 

Recognized gain _____________________

 

Basis of building _____________________

 

 

 

9. You bought some land for $60,000. You sold the land for a $40,000 down payment and an installment note of $130,000 to be received next year.

 

 

How much is the gross profit?__________________________

 

How much is the contract price?__________________________

 

How much is the gross profit percentage?____________________

 

How much taxable income should be reported in the year of sale?_____________________

 

 

 

10. You bought some land for $50,000. You had a mortgage of $14,000. You sold the land for a down payment of $30,000 plus an installment note of $90,000 to be received next year. The buyer assumed your mortgage.

 

How much is the gross profit?__________________________

 

How much is the contract price?__________________________

 

How much is the gross profit percentage?____________________

 

How much taxable income should be reported in the year of sale?_____________________

 

 

 

11. You bought some land for $25,000. You had a mortgage of $30,000. You sold the land for a down payment of $40,000 plus an installment note of $60,000 to be received next year. The buyer assumed your mortgage.

 

How much is the gross profit?__________________________

 

How much is the contract price?__________________________

 

How much is the gross profit percentage?____________________

 

How much taxable income should be reported in the year of sale?_____________________

 

 

 

12. You bought some equipment for $60,000. You had a mortgage of $45,000. You have taken depreciation of $20 000. You sold the equipment for a down payment of $25,000 plus an installment note of $80,000 to be received next year. The buyer assumed your mortgage.

 

How much is the gross profit?__________________________

 

How much is the contract price?__________________________

 

How much is the gross profit percentage?____________________

How much taxable income should be reported in the year of sale?_____________________