Solved Twelve Years Ago Marilyn Purchased Two Lots in An Undeveloped

Marilyn purchased two lots for investment twelve years ago. One lot was condemned by the city for use as a sewage treatment plant. As a result, Marilyn received $40,000 from the city for the condemned lot, which had a $10,000 basis and $40,000 fair market value. Kay exchanges equipment used in her business for other like-kind equipment and marketable securities. Her recognized gain will never exceed her realized gain or the fair market value of the marketable securities received. The Madison Corporation owned land that was condemned by the state. It received $25,000 for the land, which it had paid $3,000 for in 1993. The corporation elect

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Solved Twelve Years Ago Marilyn Purchased Two Lots in An Undeveloped

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(SOLVED) Twelve years ago Marilyn purchased two lots in

an undeveloped
Twelve years ago, Marilyn purchased two lots in an undeveloped subdivision as an investment.
Each lot has a $10,000 basis and a $40,000 FMV when the city condemns one lot for use as a
municipal sewage treatment plant. As a result of the condemnation, Marilyn receives $40,000
from the city. […]

Kay owns equipment used in her business and exchanges the equipment for other like-kind
equipment and marketable securities. a. Will Kay’s recognized gain ever exceed the realized
gain? b. Will Kay’s recognized gain ever exceed the FMV of the marketable securities? c. What
is the basis of the marketable securities […]

The Madison Corporation paid $3,000 for several acres of land in 1993 to use in its business.
The land is condemned and taken by the state in March 2015. The company receives $25,000
from the state. Whenever possible, the corporation elects to minimize taxable income. For each
of the following […]

Duke Corporation owns an office building with a $400,000 adjusted basis. The building is
destroyed by a tornado. The insurance company paid $750,000 as compensation for the loss.
Eight months after the loss, Duke uses the insurance proceeds and other funds to acquire a
new office building for $682,000 and […]

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Assume the same facts as in I:12-36 except Cindy sells the duplex to a nonrelated individual
more than two years after the exchange with Bob. Ignore any changes in adjusted basis due to
depreciation that would have occurred after the exchange. Determine: a. Bob’s realized and
recognized gain on the […]

Bob owns a duplex used as rental property. The duplex has a basis of $86,000 and $300,000
FMV. He transfers the duplex to Cindy, his sister, in exchange for a triplex that she owns. The
triplex has a basis of $279,000 and a $300,000 FMV. Two months after the exchange, […]

Wayne exchanges unimproved land with a $50,000 basis and marketable securities with a
$10,000 basis for an eight-unit apartment building having a $150,000 FMV. The land and
marketable securities are held by Wayne as investments, and the apartment building is held as
an investment. The marketable securities have a $25,000 […]