[jeff]

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[Skrier]

@IY…I also think it is C, $50,000, Under the like kind exchange the gain recognized is the lesser of gain realized or boot received. In this case realized gain would be $150,000 and net boot received would be $50,000. So the lesser of should be the correct answer.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Future_FLCPA]

So this makes me think about the other party. What would he recognize? A loss for the net boot?

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

So this makes me think about the other party. What would he recognize? A loss for the net boot?

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Skrier]

No…I would think recognized gain for him would be 0, since he paid more than he received, but I am not sure.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

No…I would think recognized gain for him would be 0, since he paid more than he received, but I am not sure.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Kenada]

Yes its 50,000 🙂

FAR 05/27/14; 786/110 - Done !

[Kenada]

Yes its 50,000 🙂

FAR 05/27/14; 786/110 - Done !

[Igotthis]

Hi Everyone!

I am confused on a question and would really appreciate it if someone could help out!

Ques: Royce Rentals, Inc, an accrual-basis taxpayer- reported rent receivable of 25,000 and 35,000 in its 2012 and 2011 balance sheet, respectively. During 2012, Royce received 50,000 in rent receivable and 5,000 in nonrefundable rent deposits. In Royce's 2012 corporate income tax return, what amount should Royce include as rent revenue?

The answer to this question is 45,000 calculated by 25-35 = (10)+50+5.

I understand the 50 and 5 but I would have thought the (10) would be a positive 10. Since out of the 35 receivable, we have 25 was from prior year equaling 10 to be new.

Thank you!

[Igotthis]

Hi Everyone!

I am confused on a question and would really appreciate it if someone could help out!

Ques: Royce Rentals, Inc, an accrual-basis taxpayer- reported rent receivable of 25,000 and 35,000 in its 2012 and 2011 balance sheet, respectively. During 2012, Royce received 50,000 in rent receivable and 5,000 in nonrefundable rent deposits. In Royce's 2012 corporate income tax return, what amount should Royce include as rent revenue?

The answer to this question is 45,000 calculated by 25-35 = (10)+50+5.

I understand the 50 and 5 but I would have thought the (10) would be a positive 10. Since out of the 35 receivable, we have 25 was from prior year equaling 10 to be new.

Thank you!

[UCMCPA]

Set it up like a T account…. What number do you place on the DEBIT side so the final balance is 25,000? ;0

………………………T account

……… 35,000…….|……(50,000)

…………………………….(5,000)

ending 25,000…….|.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[UCMCPA]

Set it up like a T account…. What number do you place on the DEBIT side so the final balance is 25,000? ;0

………………………T account

……… 35,000…….|……(50,000)

…………………………….(5,000)

ending 25,000…….|.

FAR - 84
AUD - 94
REG - 86
BEC - 86

[Kenada]

On May 5, Bold obtained a $90,000 judgment in a malpractice action against Aker, a physician. On June 2, Aker obtained a $75,000 loan from Tint Finance Co. by knowingly making certain false representations to Tint. On July 7, Aker filed a voluntary petition in bankruptcy under the liquidation provisions of the Bankruptcy Code. Both Bold and Tint filed claims in Aker’s bankruptcy proceeding. Assets in Aker’s bankruptcy estate are exempt. Bold’s claim

Will be exempt from Aker’s discharge in bankruptcy.

Will be discharged in Aker’s bankruptcy proceeding.

Will cause Aker to be denied a discharge in bankruptcy.

Will be set aside as a preference.

FAR 05/27/14; 786/110 - Done !

[Kenada]

On May 5, Bold obtained a $90,000 judgment in a malpractice action against Aker, a physician. On June 2, Aker obtained a $75,000 loan from Tint Finance Co. by knowingly making certain false representations to Tint. On July 7, Aker filed a voluntary petition in bankruptcy under the liquidation provisions of the Bankruptcy Code. Both Bold and Tint filed claims in Aker’s bankruptcy proceeding. Assets in Aker’s bankruptcy estate are exempt. Bold’s claim

Will be exempt from Aker’s discharge in bankruptcy.

Will be discharged in Aker’s bankruptcy proceeding.

Will cause Aker to be denied a discharge in bankruptcy.

Will be set aside as a preference.

FAR 05/27/14; 786/110 - Done !

[Skrier]

@IY…good post…this is a tricky one. I think the malpractice judgement would be discharged since this is a civil suit or (negligence tort). Only willful or malicious injury, and personal injury or death caused by operating while intoxicated are not discharged.

Unless malpractice is considered willful or malicious…

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@IY…good post…this is a tricky one. I think the malpractice judgement would be discharged since this is a civil suit or (negligence tort). Only willful or malicious injury, and personal injury or death caused by operating while intoxicated are not discharged.

Unless malpractice is considered willful or malicious…

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Author]

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