Question
Wendy inherited a beach house in North Carolina (rental only) on January 2, 2020, from her father. The FMV at the fathers death was $850,000.
Wendy inherited a beach house in North Carolina (rental only) on January 2, 2020, from her father. The FMV at the father’s death was $850,000. He had purchased the house 20 years earlier for $100,000.
On December 29, 2020, Wendy properly conducted a like-kind exchange for rental real estate located at 128 Lake Blvd., Hot Town, AZ. She received rental property with an FMV of $950,000 and $20,000 cash in exchange for the North Carolina beach house. The Arizona property did not produce any income until 2020.
There are rental details about the property given up but I don't think it's relevant to the like-kind exchange.
| Summer rental income | $ 45,000 |
|---|---|
| Repairs | 2,500 |
| Real estate taxes | 6,500 |
| Utilities | 2,400 |
| Depreciation | (Calculate) |
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Solution Since Wendy inherited the rental property on her fathers death So Depreciation on su...
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
