[jeff]

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

[WANNABE_CPA]

For Basis practice,

Lecker exchanged a van used exclusively for for business and had an adjusted basis of $20000 for a new van. The new van had a fair market value of $10000, and Lecker also received $3000 cash. What was leckers tax basis in acquired van?

A. $20000

B $7000

C $13000

D $17000

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Tax lady]

c?

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[WANNABE_CPA]

I am doing Mcqs for Property, Just started. Alongwith go through Estate and Gift taxes and secured transactions.

I cant do all mcqs of a big topic in a stretch, i mix them up with breaks of other topics. Lol studying is sooo hard.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Tax lady]

I do the same thing. And I only do 10 questions at a time. For some reason it helps me stay focused.

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[WANNABE_CPA]

same here, 10 questions…cant go beyond them or i am totally exhausted.

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Mamabear]

I'm feeding one child broccoli while helping another child make a calendar counting down to Christmas while studying. 🙂 I think this is a like kind exchange, which is nontaxable which means the new property basis is equal to the old property basis so I am going with $20K as the basis for the new property.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Tax lady]

This question is tricky….normally I'm ok with like/kind but this one had me stumped! Sound like you have your hands full mama! I remember those days….my boys are older (9 and 11) So they are a little more autonomous. :0)

REG 8/15/14 (73); 11/13/14 (82)-expired 🙁
AUD 5/30/15 (80)
BEC 11/28/15 (75)
FAR 7/30/16

Studying with CPAexcel and Ninja notes/MCQ's/Flashcards

[WANNABE_CPA]

Ans is D . There is a Loss realized but not recognized.

Adjusted basis of new van = FMV of new van – Deferred gain + Deferred loss

$10000 – $0 + $7000

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[leglock]

Id guess 17000. Im curious as to this answer. Dont they have a deferred loss of 7 which gets added to fmv of new van of 10 for basis new van of 17

[Mamabear]

So it's D–$17K and not C? I'm confused too.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Mamabear]

OK–Am I losing it? Did you have and is C before and change it?

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[WANNABE_CPA]

Sorry, It is D, $17000

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[WANNABE_CPA]

@ mambear, i was doing another question and i answered C in that which got mixed up with Posting C but giving correct solution…

FAR : 68, 74, 83 Thank you God 🙂
BEC : 78 (8/27) 🙂
REG : 72 ,80 (2/25) 🙂
AUD : 69,67, 07/23

[Mamabear]

Whew. Thought I was seeing things for a minute there. I am bummed because I was going by my notes and now I feel like the notes are wrong.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

it is D because the loss of (7,000) is never recognized, so it is a deferred loss.

The new basis= FMV of the property received + Deferred loss= 10,000 + 7,000= 17,000

[Author]

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