KNB sold real property to Firm P for $15,000 cash and Firm Ps assumption of the $85,000

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KNB sold real property to Firm P for $15,000 cash and Firm P’s assumption of the $85,000 mortgage on the property.

a. What is KNB’s amount realized on sale?

b. Compute KNB’s after-tax cash flow from the sale if its adjusted basis in the real property is $40,000 and its marginal tax rate is 35 percent.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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Question Posted: Jan 15, 2019 05:24 AM

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KNB sold real property to Firm P for $15,000 cash and Firm Ps assumption of the $85,000

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a 100000 15000 cash 85000 relief of debt b KNBs realiz...View the full answer

Principles Of Taxation For Business And Investment Planning 2019 Edition

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