Im Willing To Pay More For These Questions Acct 323 Income Tax I Quiz Iii 1 Este


19) Waylon exchanges unimproved land with a $50,000 basis and marketable securities with a $10,000 basis for a 10-unit apartment building having a $150,000 FMV. The land and marketable securities are held by Waylon as investments, and the apartment building is held as an investment. The marketable securities have a $25,000 FMV. What is Waylon’s realized gain, recognized gain, and his basis in the apartment building?

20) Ashton, a college student, bought a truck in 2012 for $6,000. He used the truck 70% of the time as a distributor for the local newspaper and 30% of the time for personal use. The truck has a five-year recovery period, and he claimed depreciation deductions of $840 in 2012 and $1,344 in 2013. Ashton sells the truck on June 20, 2014 for $3,000.

a. What is the amount of allowable depreciation in 2014? b. What is Ashton’s realized and recognized gain or loss and what is its character?

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