27. Peter Brady purcha to tenants. In ased an office building November 20ebor $1

Question

27. Peter Brady purcha to tenants. In ased an office building November 20ebor $100,000 in November, 2016. He immediately began to rent the bui Annoying Duck Insurance Comp and Peter used $98,000 to rebuild a new retail shopping center on $1 r Peter's building burned to the ground after his night security fell asleep while smoking. The basis of the building was $97,435 at the time of the fire. In 20n6, paid Peter $105,000 in an insurance settlement same site. It was an instant hit and all the stores were leased out immediately recognized gain/loss? What is Peter's basis in the new shopping center? What is Peter's realized gain/loss (12 points) Realized Gain/(Loss) Recognized Gain/(Loss) Basis in Shopping Center fasS buildig tg7,4X-)ooIT at httv1.utve Jo) nsrenu paid $10S000

Explanation / Answer

Realized Gain = Amount realized - Basis in the asset = $105,000 - $97,435 = $7,565

Recognized gain = Amount realized - Cost of the new asset asset = $105,000 - $98,000 = $7,000

Basis in the shopping center = $98,000

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.