i Chrome File Edit View History Bookmarks People Window Help ???5296 D. Tue 3:19

Question

i Chrome File Edit View History Bookmarks People Window Help ???5296 D. Tue 3:19 PM Q, E Connect Accounting question ! Chess x × CSecure https://newconnect.mheducation.com/flow/connect.html ? ? Chapter 11 HW Help Save & Exit Submit Check my work 27 Required information The following information appes to the questions displayed below Russell Corporation sold a parcel of land valued at $400,000. Its basis in the land was $275,000. For the land, Russell received S50,000 in cash in year and a note providing that Russell will receive $175,000 in year 1and $175,000 in year 2 from the buyer. (Do not round Intermediate calculations, Round your answers to the nearest whole dollar amount.) 0.25 points a. What is Russel's realized gain on the transaction? Pre 27 28 o33N>

Explanation / Answer

Answer a. Sale Price of Land    400,000.00 Cost of Land    275,000.00 Realized Gain on sale of Land    125,000.00 Answer b. Profit Percentage = $125,000 / $400,000 Profit Percentage = 31.25% Amount Recd. Profit % Recognized Gain Year 0      50,000.00 31.25%        15,625.00 Year 1    175,000.00 31.25%        54,687.50 Year 2    175,000.00 31.25%        54,687.50

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.