Bill and Alice are married, age 42 and 40, have no children and had the followin
ID: 2640005 • Letter: B
Question
Bill and Alice are married, age 42 and 40, have no children and had the following transactions during 2014:
a. They sold their old residence on January 28, for $380,000. The basis of their old residence, purchased in 1999, was $70,000. The selling expenses were $20,000. On May 17, they purchased and moved into another residence costing $150,000.
b. On April 28, they sold for $8,000 stock that Alice had received as a gift from her mother, who had purchased the stock for $10,000 in 2004. Her mother gave Alice the stock on November 15, 2011, when the fair market value was $9,400.
c. On May 24, Bill sold for $21,000 stock inherited from his father. His father died on June 14, 2008, when the fair market value of the stock was $9,000. Bill
Explanation / Answer
with the given information the total wealth of these people is :
a. surplus amount from selling home = $140,000
b. on April 28, they sold stock value of $8000
c. on April 24, the stock worth is $21,000
d. the income from sale of car= $8000
and other income= $2000+ $3000
total income= $190,000 and loss is $7000
the net wealth up to the year= $183,000
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