During the current year,the Harlow Coporation which specializes in commercial co

Question

During the current year,the Harlow Coporation which specializes in commercial construction has the following property transaction E. Harlow sells an automobile used by its president for business purpose for $10,000.to a local car dealership. the car originally cost $32,000. and its adjusted basis is $15,000. The company has an agreement to replace the automobile with a customized four-wheel-drive vehicle from a company that spacializes in custom cars. However, the day the company sells the automobile, it is infomed that the custom car company will not be able to deliver the vehicle for at least 10 weeks. Harlow terminates its contract with the custom car company and buys a new automobile from the local car dealership for $55,000. Determine the realized and recognized gain or loss on each of Harlow's property trasactiioons and the basis of any property acquired in each trasaction

Explanation / Answer

Sales Value 10000 Adjusted Value 15000 Recognised loss -5000 Purchase Value of new car 55000 Cost of the old car 32000 Realised Loss 23000 Please consider the time devoted to make this reply by rating this as 5 star. Thank u in advance. God bless u :)

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