{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-05-26T15:04:23-04:00", "answer_date": "2024-05-26 15:04:23", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "1745306", "url": "\/study-help\/questions\/on-may-1-of-the-current-year-fred-a-cashbasis-1745306", "question_creation_date_js": "2024-05-26T15:04:23-04:00", "question_creation_date": "May 26, 2024 03:04 PM", "meta_title": "[Solved] On May 1, of the current year, Fred, a ca | SolutionInn", "meta_description": "Answer of - On May 1, of the current year, Fred, a cash-basis taxpayer, sells his farm to Ryan, also a cash-basis taxpayer, for $1 | SolutionInn", "meta_keywords": "1,current,year,fred,cash-basis,taxpayer,sells,farm,ryan,$100,000,s,basis", "question_title_h1": " On May 1, of the current year, Fred, a cash-basis taxpayer, sells his farm to Ryan, also a cash-basis taxpayer, for $100,000. Fred's basis", "question_title": " On May 1, of the current year, Fred, a cash-basis taxpayer,", "question_title_for_js_snippet": "On May 1, of the current year, Fred, a cash basis taxpayer, sells his farm to Ryan, also a cash basis taxpayer, for $100,000 Fred's basis in the farm is $65,000 The real property tax year is the calendar year Real estate taxes on the property for the year are $3,660 and are payable in November of the current year The sales agreement does not provide for apportionment of real estate taxes between the buyer and seller Assume Ryan pays all of the real estate taxes in November The effects of this payment will be $0 Taxes Allocated to Fred $3,660 Taxes Allocated to Ryan $1,230 Taxes Added to Ryan's basis $2 430 Taxes Deductible by Ryan $2,430 Taxes Allocated to Fred $1,230 Taxes Allocated to Ryan $3,660 Taxes Allocated to Fred, $0 Taxes Allocated to Ryan ", "question_description": "\"image", "transcribed_text": "On May 1, of the current year, Fred, a cash-basis taxpayer, sells his farm to Ryan, also a cash-basis taxpayer, for $100,000. Fred's basis in the farm is $65,000. The real property tax year is the calendar year. Real estate taxes on the property for the year are $3,660 and are payable in November of the current year. The sales agreement does not provide for apportionment of real estate taxes between the buyer and seller. Assume Ryan pays all of the real estate taxes in November. The effects of this payment will be: $0 Taxes Allocated to Fred; $3,660 Taxes Allocated to Ryan. $1,230 Taxes Added to Ryan's basis: $2.430 Taxes Deductible by Ryan. $2,430 Taxes Allocated to Fred; $1,230 Taxes Allocated to Ryan. $3,660 Taxes Allocated to Fred, $0 Taxes Allocated to Ryan.", "related_book": { "title": "Intermediate Accounting", "isbn": "978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139", "edition": "11th edition", "authors": "Loren A. Nikolai, John D. Bazley, Jefferson P. Jones", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/268.jpg", "uri": "\/textbooks\/intermediate-accounting-11th-edition-268", "see_more_uri": "" }, "free_related_book": { "isbn": "0645246905", "uri": "\/textbooks\/pacific-profiles-allied-fighters-bell-p-39-and-p-400-airacobra-south-and-southwest-pacific-1942-1944-volume-6-1st-edition-9780645246902-117338", "name": "Pacific Profiles Allied Fighters Bell P 39 And P 400 Airacobra South And Southwest Pacific 1942-1944 Volume 6", "edition": "1st Edition" }, "question_posted": "2024-05-26 15:04:23", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/modern-engineering-mathematics\/if-r-t-t-2-t-3--1236662", "description": "If r = (t, t 2 , t 3 ), find r(t) and r(t).", "stars": 3 }, { "url": "\/in-a-classic-study-beaver-1968-examined-the-trading-volume", "description": "In a classic study, Beaver (1968) examined the trading volume of firms securities around the time of their earnings announcements. 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