Use the Lesson 3 template down below to complete both parts of the case study. Be sure to read the instructions and complete all template sections. If
Use the Lesson 3 template down below to complete both parts of the case study.
- Be sure to read the instructions and complete all template sections.
- If required, calculations must be displayed on the Excel template.
Part 1
Scenario
Gina Smith exchanges a business land with an adjusted basis of $400,000 and a fair market value of $700,000 for Jennifer Lopez's office building worth $600,000 and $100,000 cash. Jennifer had an adjusted basis of $450,000 in the building.
- Use the scenario data to answer the questions within the Excel template to complete Part 1.
Part 2
Scenario
Frank Cortez's business property with an adjusted basis of $160,000 is condemned by local authorities. He receives a $240,000 condemnation award.
- Answer the questions in the Excel template based on the scenario information to complete Part 2.
Part 1
ACC221 Lesson 3 Case Study Template |
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Part 1 |
Scenario: Gina Smith exchanges a business land with an adjusted basis of $400,000 and a fair market value of $700,000 for Jennifer Lopez's office building worth $600,000 and $100,000 cash. Jennifer had an adjusted basis of $450,000 in the building. |
Answer the questions in the space provided below. |
1. What is Gina's realized and recognized gain or loss and the basis in the office building? |
2. What is Jennifer's realized and recognized gain or loss and the basis in the business land? |
3. Assume no cash was received by Gina and the office building was worth $700,000. What would be Gina's realized and recognized gain or loss and the basis in the office building? |
@Rio Salado College 5/3/2021 Start Date
Part 2
ACC221 Lesson 3 Case Study Template |
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