Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Keanu sold land for $400,000 plus a note for $400,000. The interest rate on the note was equal to the Federal rate. The fair market value of the note was $400,000. His basis in the land was $75,000:

a. If Keanu is an accrual basis taxpayer and does not use the installment method to report the gain, his gain in the year of sale is $725,000 ($400,000 + $400,000 - $75,000)

b. If Keanu is a cash basis taxpayer, he cannot use the installment method to report the gain.

c. If Keanu is a cash basis taxpayer and uses the installment method, the contract price is $400,000.

d. If Keanu is a cash basis taxpayer, his gain in the year of the sale is $325,000 ($400,000 - $75,000).

e. None of the choices.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M939938

Have any Question? 


Related Questions in Accounting Basics

Question 1the collection on an account within the 110 n30

Question 1 The collection on an account within the 1/10 n/30 discount period was recorded using a 10% discount rather than a 1% discount in both the controlling and subsidiary accounts. This error will cause the A. the n ...

1 the accounting equation is assets liabilities owners

1. The accounting equation is assets = liabilities + owner's equity. Please explain the relationship between economic resources and claims to economic resources. Why must this equation always balance? What transactions i ...

Article critiqueuse the csu online library to locate and

Article Critique Use the CSU Online Library to locate and review a scholarly article found in a peer reviewed journal related to: Unions, Labor Relations, or International Human Resources Management. There is a minimum r ...

Assignmentaccounting is the study of how businesses track

Assignment Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions. ...

Write think about a specificissue or policy that you are

Write: Think about a specificissue or policy that you are interested in and/or that has impacted you personally. Use the assigned resources that are provided for this journal to gather information about the goals and pro ...

Accounting assignmentplease include all calculationswork

Accounting Assignment Please include all calculations/work necessary. Please show references and in-text citing where needed. Please answer all questions in full. No plagiarism. For the eActivity, research one publicly t ...

How much did you borrow for your house if your monthly

How much did you borrow for your house if your monthly mortgage payment for a 30 year mortgage at 6.65% APR is $1,600?? A $218,080 B $202,503 C $186,926 D $233,658 E $249,235 F $264,812 Shady Rack Inchas a bond outstandi ...

Accounting paper1each person will write a 3 page paper

Accounting Paper 1. Each person will write a 3 page paper, single spaced, one inch margins, 12 pt font with double space between paragraphs. 2. You will also be required to include the Income Statement, Balance Sheet and ...

Joint venture accountingquestion joe and faith were partner

Joint venture accounting Question: joe and faith were partner partners in the following scheme, joe to take five ninths, and faith fourth ninths of the profits. They agree to guarantee the subscription at 85000 shares of ...

Modern furniture company had finally arrived at the point

Modern Furniture Company had finally arrived at the point where it had a sufficient excess cash flow of $4.8 million to consider paying a dividend. It had 3 million shares of stock outstanding and was considering paying ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen