# Ac 553 Essay

379 Words2 Pages
AC 553 Week 7 47. On April 18, 2011, Jane Juniper purchased 30 shares of Bryan Corp. stock for \$210, and on September 29, 2011, she purchased 90 additional shares for \$900. On November 28, 2011, she sold 48 shares, which could not be specifically identified, for \$576 and on December 8, 2011, she sold another 25 shares for \$188. What is her recognized gain or loss? 210/30= \$7; 900/90= \$10. November- 30* \$7 + 18* \$10= 390. December- 25* \$10= 250. Total gain \$124.00 40. Debbie Davis and Elizabeth Engels exchanged like-kind property. Debbie had an adjusted basis of \$12,000 in her property (fair market value is \$15,000). Elizabeth's property had an adjusted basis of \$9,000 and a fair market value of \$10,500, and Elizabeth gave Debbie \$4,500 in cash. Determine Debbie's and Elizabeth's realized gain or loss, recognized gain or loss, and the basis in their new property. The realized gain for Elizabeth is 4500. The basis of Debbie’s new property is \$12,000. The basis of Elizabeth’s property is \$13,500 34. Jim Junction purchased a truck for business on November 17, 2010, for \$40,000. On July 21, 2011, he exchanged the truck for another truck in a like-kind exchange. The new truck had a fair market value of \$42,000. When does the holding period on the new truck begin and what is its basis? The holding period begins on the date of acquisition. Property given in the exchange if the basis of the acquired property has the same basis in whole or in part as the property exchanged. 48. Which of the following are Section 1231 assets? Explain. Assume all the items have been held long-term. 1231 assets are assets are assets used for a trade or business and are held long term (more than 12 months). The items noted as a 1231 asset fit this description: * a.Machinery used in the business- this is a 1231 asset * b.Personal home * c.Factory building- 1231 asset *