Question
1. Which of the following is a capital asset? Explain. a. a gold ring received as a gift b. a personal automobile c. accounts receivable
1. Which of the following is a capital asset? Explain. a. a gold ring received as a gift b. a personal automobile c. accounts receivable obtained in the ordinary course of business d. shares of stock in ABC Corp. e. a building owned and used by ABC Corp. f. business cars and trucks owned and used by ABC corp. g. a copyright on a book written and owned by the author.
2. Julie sold her house. At the time of purchase, she paid $50,000 to the seller and $5000 in closing costs. Five years later, she paid $20,000 to add a room onto it. The purchaser of Julie's house gave Julie $70,000 in cash. Because the purchaser could not get a mortgage, he also gave Julie a car valued at $10,000 and agreed to pay the remaining $20,000 mortgage on Julie's house. What is Julie's realized gain or loss on the sale?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started