[jeff]

Free Study Planner, Notes, Audio, Flashcards: https://www.another71.com/cpa-exam-study-plan/

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

[CPA50]

Wow! You are all going so fast! I am still two pages behind, just trying to recreate your calculations 🙂

Keep it going – this is awesome and fun!

AUD 88 (expired), 80 retake
FAR 64,69,67,73,67,73,73,73, August 3
REG 75 (expired) September 7
BEC 72, 77

The adventure continues...

[Mamabear]

OK. They threw another curveball at us. Realized gain is computed:

FMV of building received $550K

+ mortgage of old building $100K

+ cash received $25K

= amount realized $675K

Less:

Basis of old building $375K and mortgage of new building $125K = $500K

= Realized gain $175K

Since the boot received in the form of cash cannot be offset against boot given in the form of an assumption of a mortgage, the realized gain is recigned to the extent of the $25K cash received. WTF?

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]

@Bucky.. C?

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

[Tax lady]

Was the 125K in the problem? Am I going crazy? lol

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]

No its not..there is no 125k mortgage, its just 100k which is added in realized amount..

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

[Tax lady]

@bucky B?

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

[Anonymous]

@Wannabe – C is correct! Thanks everyone for digging into this topic!

[Tax lady]

OH ok. Crazy huh? I'm all confused about that one.

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]

@ Bucky you ve to explain, i answered that becuase there cant eb any gain as boot paid, but i just realized am not getting $34000

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

[Mamabear]

@Tax Lady–no, you're not going crazy. I clearly skipped typing that in. I am so sorry. I think I'll just stick to trying to answer you guys' questions because copy/paste is a lot more accurate than typing. My bad guys.

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]

@wannabe–I got $34 because it is $32 of his old basis + $2K of the cash he paid = $34 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!!

[Anonymous]

Here is the answer – Because this trade was of like-kind property and no boot (cash) was received, no taxable gain or loss is recognized. Because no gain or loss is recognized, the taxpayer retains the tax basis given up. Mr. Albertson exchanged property with a tax-basis of $32,000 and cash with a tax-basis of $2,000. The tax-basis of the new property is that same total tax basis or $34,000.

[WANNABE_CPA]

oh thank god, i was really thinking we did something wrong over there… 🙂

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

[Tax lady]

@mama. Whew! I thought I had totally forgot what I was doing again. lol

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

[Anonymous]

Nancy Stuart operates a business as a sole proprietorship. In Year One, she trades one of her depreciable assets with a tax basis of $25,000 and a fair value of $34,000 to another company for an asset that does not qualify as being like-kind. This new asset has a fair value of $36,000. To even out the trade, Stuart also had to pay cash of $2,000. What is her tax basis for the new asset and what gain must she report on the exchange for tax purposes?

A $36,000 and $9,000

B $34,000 and $2,000

C $27,000 and zero

D $25,000 and $11,000

[Author]

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