Your Perfect Assignment is Just a Click Away

Starting at $8.00 per Page

100% Original, Plagiarism Free, Customized to Your instructions!


AF 450 Umass Amherst Federal Tax Realized Gain Recovery Deduction Problems

AF 450 Umass Amherst Federal Tax Realized Gain Recovery Deduction Problems

Question Description

I’m working on a accounting multi-part question and need guidance to help me understand better.

1. Jedi Inc. owns warehouse (adjusted basis of $20,000; FMV of $25,000). Jedi Inc. exchanges the its warehouse along with its business car (adjusted basis of $14,000; FMV of $15,000) with Syth Corp for new warehouse (adjusted basis of $20,000; FMV of $40,000).

(1) Determine Jedi Inc.’s realized gain or loss, recognized gain or loss, and adjusted basis of the new warehouse received, respectively.

(2) In general, realized gain or loss is not recognized under like-kind exchange. Instead, recognition of realized gain or loss is postponed until the sale or exchange of the property. Discuss (a) why the realized gain or loss is not recognized, and (b) how the realized gain or loss is recognized later.

2. Khaleesi owns a tax consulting service company (“DothrakiTax”) as a sole proprietorship. In 2020, Khaleesi’s business taxable income is $1,500,000 before considering any §179 deduction, and Khaleesi purchases and places a business truck (a 5-year class property) in service for $2,700,000 on May 23rd, 2020. If Khaleesi chooses (1) §179 deduction option, and (2) declining balance (DB) cost recovery method (assume the depreciation rate for DB method is 20%), what is Khaleesi’s cost recovery deduction for 2020?

"Place your order now for a similar assignment and have exceptional work written by our team of experts, guaranteeing you A results."

Order Solution Now

Our Service Charter

1. Professional & Expert Writers: Eminence Papers only hires the best. Our writers are specially selected and recruited, after which they undergo further training to perfect their skills for specialization purposes. Moreover, our writers are holders of masters and Ph.D. degrees. They have impressive academic records, besides being native English speakers.

2. Top Quality Papers: Our customers are always guaranteed of papers that exceed their expectations. All our writers have +5 years of experience. This implies that all papers are written by individuals who are experts in their fields. In addition, the quality team reviews all the papers before sending them to the customers.

3. Plagiarism-Free Papers: All papers provided by Eminence Papers are written from scratch. Appropriate referencing and citation of key information are followed. Plagiarism checkers are used by the Quality assurance team and our editors just to double-check that there are no instances of plagiarism.

4. Timely Delivery: Time wasted is equivalent to a failed dedication and commitment. Eminence Papers are known for the timely delivery of any pending customer orders. Customers are well informed of the progress of their papers to ensure they keep track of what the writer is providing before the final draft is sent for grading.

5. Affordable Prices: Our prices are fairly structured to fit in all groups. Any customer willing to place their assignments with us can do so at very affordable prices. In addition, our customers enjoy regular discounts and bonuses.

6. 24/7 Customer Support: At Eminence Papers, we have put in place a team of experts who answer all customer inquiries promptly. The best part is the ever-availability of the team. Customers can make inquiries anytime.