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Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $67,000 and it has claimed $33,000 of
Hauswirth Corporation sold (or exchanged) a warehouse in year 0. Hauswirth bought the warehouse several years ago for $67,000 and it has claimed $33,000 of depreciation expense against the building. (Loss amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable. Round your final answers to the nearest whole dollar amount.) Required: a. Assuming that Hauswirth receives $47,300 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. b. Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $47,300, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. c. Assuming that Hauswirth receives $26,000 in cash in year 0 and a $57,500 note receivable that is payable in year 1, compute the amount and character of Hauswirth's gain or loss in year 0 and in year 1. (Round "Gross Profit Percentage" to 2 decimal places.) Complete this question by entering your answers in the tabs below. Req a Reqb Reqc Assuming that Hauswirth receives $47,300 in cash for the warehouse, compute the amount and character of Hauswirth's recognized gain or loss on the sale. Recognized Gain/(Loss) Character of Recognized Gain/(Loss): Ordinary Gain/(Loss) $1231 gain (loss) Rega Reg b Reqc Assuming that Hauswirth exchanges the warehouse in a like-kind exchange for some land with a fair market value of $47,300, compute Hauswirth's realized gain or loss, recognized gain or loss, deferred gain or loss, and basis in the new land. Gain realized Gain recognized Deferred gain Adjusted basis in new property
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