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Determine the realized, recognized, and postponed gain or loss and the new basis for each of the following like kind exchanges:   Adjusted Basisof Old Machine Boot Given Fair Market Valueof New Asset BootReceived a. $ 7,000 $ –0– $12,000 $4,000 b. 14,000 2,000...

Jason, a calendar year taxpayer, is the sole proprietor of a hardware store. His adjusted basis for the building and the related land is $150,000. On March 4, 2012, state authorities notify Jason that his property is going to be condemned so that the highway can be...

Wanda, a calendar year taxpayer, owned a building (adjusted basis of $250,000) in which she operated a bakery that was destroyed by fire in December 2012. She receives insurance proceeds of $290,000 for the building the following March. Wanda is considering two...

Webb, who is single, listed his personal residence with a real estate agent on March 3, 2012, at a price of $350,000. He rejected several offers in the $300,000 range during the summer. Finally, on August 16, 2012, he and the purchaser signed a contract to sell for...

Ben owns a beach house (five years) and a cabin in the mountains (four years). His adjusted basis is $280,000 in the beach house and $315,000 in the mountain cabin. Ben also rents a townhouse in the city where he is employed. During the year, he occupies each of the...

Missy, age 30, has owned her principal residence (adjusted basis of $225,000) for five years. During the first three years of ownership, she occupied it as her principal residence. During the past two years, she was in graduate school and rented the residence. After...

Alton Newman, age 67, is married and files a joint return with his wife, Clair, age 65. Alton and Clair are both retired, and during 2011, they received Social Security benefits of $10,000. Alton’s Social Security number is 111–11–1111, and Clair’s is 123–45–6789....

Alice Honeycutt, age 39, is a self employed accountant. Alice’s Social Security number is 123–45–6789. Her address is 101 Glass Road, Hammond, LA 70402. Her income and expenses associated with her accounting practice for 2012 are as follows: Revenues (cash receipts...

Inez Butler is the sole shareholder of Pelican, Inc., which owns car dealerships. Pelican purchases the assets of a Chevrolet dealership. The purchase price of $12 million is allocated to the purchased assets based on the fair market values. This includes $3.5 million...